Tax rates Netherlands
There are many different types of tax rates in the Netherlands. Tax rates Netherlands vary from 0% until 52%.
We discuss the most common taxes and the tax rates that are being used.
1) Tax rates Netherlands : Income tax
The Dutch income tax system has three categories of taxable income with their own tax rates:
– box 1 taxable income from work and dwellings;
– box 2 taxable income from substantial interest;
– box 3 taxable income from savings and investments.
The income tax payable is the aggregate amount of the tax on the taxable income in the three boxes.
The tax rates on taxable income for income from work and dwellings (box 1) for the fiscal year 2014 is:
1st bracket = 36,55% on the first € 19.922.
This rate comprises of 8,40% tax and 28,15% security contributions;
2nd bracket = 40,40% on the next € 13.793.
This rate comprises of 12,25% tax and 28,15% social security contributions;
3rd bracket = 40,40% tax on the next € 32.706;
4th bracket = 52% tax on the excess income of € 66.422.
|Taxable income above||But not
|Tax rates Netherlands including social
|€ —||€ 19.922||36,55%|
|€ 19.922||€ 33.715||40,40%|
|€ 33.715||€ 66.421||40,40%|
|€ 66.421||€ —||52,00%|
Taxable income from substantial interest (box 2) is taxed at a flat rate of 25% .
Taxable income from savings and investments (box 3) is taxed at a flat rate of 30% of a deemed return on investment of 4%. There is a tax-free amount of € 21.330 per person.
This results in taxation of 1.2% tax rates of your total equity above the threshold of € 21.330.
Benefit for expats
Your savings and investments are not subject to income tax Netherlands if you have been granted the 30% ruling.
2) Tax rates Netherlands : Corporate income tax
The Dutch corporate income tax rates in 2016 are as follows:
|Profit till € 200,000:||20%|
|Above € 200,000 profit:||25%|
3) Tax rates Netherlands : VAT
The VAT tax rates Netherlands for 2016 are:
– 0% for international activities, like transferring goods outside of the European Union.
– 6% for certain activities, like food, drinks and medicines.
– 21% for all other VAT taxable activities.
There are also some activities that are exempt of VAT.
4) Tax rates Netherlands : Inheritance and gift tax
Inheritance and gift tax are levied on the value of everything that is received by someone who lived in the Netherlands at the time of the transfer or the received is located in the Netherlands, like real estate.
The tax rates Netherlands in 2014 are as follows:
|Received:||When inherited or received by:|
|1. Partners and children||1A. Grandchildren||2. Other recipients|
|0 till € 121.903||10% tax rate||18% tax rate||30% tax rate|
|€ 121.903 and more||20% tax rate||36% tax rate||40% tax rate|
The exemptions for the inheritance tax for 2016 are:
|Sick of handicapped children||€ 60.439|
|Children and grandchildren||€ 20.148|
|Other recipients||€ 2.122|
If you need more information about tax rates Netherlands go to the website of the Belastingdienst.