Box 1 income: the income from labor and main residence for non-residents

The Box 1 income for non-resident taxpayers in the Netherlands consists of the qualifying Dutch Box 1 income (as calculated for resident taxpayers), reduced with losses from qualifying Dutch Box 1 income and applicable levy rebates.

Qualifying Dutch Box 1 income is the aggregate amount of: 

• profits from a Dutch enterprise conducted through a qualifying permanent establishment or permanent representative;
• taxable wages derived from an employment exercised or previously exercised in the Netherlands; 
• taxable income from other activities performed in the Netherlands;
• periodic payments and benefits in so far the premiums have previously been deducted as premiums paid for income provision or the premiums have been deducted as pension premiums from the taxable profits of a Dutch enterprise excluding the qualifying negative income for income provisions;
• state allowances and benefits received from or on behalf of a Dutch public entity;
• the income from a main residence in the Netherlands, reduced with the deduction for limited mortgage; 
• the negative expenditures for income provisions;
• the negative personal allowances.

For non-resident sportsmen, musicians and artists a special tax regime applies.

If the aggregate amount of Box 1 income is negative, the income qualifies as loss from labor and main residence for non-resident taxpayers. These losses can be deducted and compensated under the same terms and conditions as applicable to resident taxpayers. The losses may be increased with qualifying losses originating from a tax liability as a Dutch resident taxpayer.