Income tax Netherlands

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Income tax in the Netherlands is regulated by the “Wet inkomstenbelasting 2001” .
The income tax Netherlands has to be done each year before the 1st of May.
The fiscal year is the same as the calendar year.

Income tax Netherlands

The system of income tax Netherlands integrates the income tax with fees paid for the social security contributions.
There are three categories of income tax in the Netherlands and they are referred to as “boxes”
– box 1 taxable income from work and dwellings;
– box 2 taxable income from substantial interest;
– box 3 taxable income from savings and investments.

Each box has their own income tax rates.
See the income tax rates of these boxes in the chapter Tax rates Netherlands.

The gross salary you receive as an expat in the Netherlands will be subject to the income tax Netherlands.
However, when Dutch wage tax has been withheld, often no or only very little income tax will be due.
Sometimes you will even be able to reclaim a refund of the wage tax withheld.

No or very little income tax is due because the Dutch wage tax is an advance levy to the income tax Netherlands.
As a result the income tax due is reduced with any wage tax withheld.
If the wage tax withheld is more than the income tax due, you will be able to claim a tax refund.

Any savings and investments you have as an expat will also be subject to income tax Netherlands.
This, however, is only the case if the fair market value of your savings and investments exceed € 24.437
The fair market value of your savings and investments that exceed € 24.437 is subject to the income
tax Netherlands at a fixed rate of 1,2%. The formula is 30% tax over 4% assumed return.

Benefit for expats
Your savings and investments are not subject to income tax Netherlands if you have
been granted the 30% ruling.

If you looking for tax advice,  contact the specialized tax company for expats Blue Umbrella.
open blue umbrella account