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The Dutch taxable income of non-resident taxpayers

Last updated : 27-12-2023

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An overview of Dutch taxable income for non-resident taxpayers

In the Netherlands, the Dutch taxable income for non-resident taxpayers consists of:

The Box system for non-resident taxpayers works the same as for resident taxpayers, but the taxable base is different and can furthermore be limited by the application of tax treaties.

Taxable individuals + -

Tax residence of individuals in the Netherlands

Spouses, registered partners and children

The levy of Dutch social security contributions

The taxable income for resident taxpayers of the Netherlands + -

Box 1: The income from labor and main residence (Box 1) + -

Taxation of income from employment in the Netherlands + -

The tax deduction for travel expenses/commuting (reisaftrek)

Taxation of a private house used as main residence

Income from a Dutch partnership

Income from a private business conducted in the Netherlands + -

The old age reserve, Fiscale OudedagsReserve (FOR), for individuals who conduct a business

The hourly criterion for private entrepreneurs in the Dutch Income Tax Act

Special tax deductions for the private entrepreneur (Ondernemersaftrek)

The self employed deduction (zelfstandigenaftrek)

The deduction for Research and Development activities (aftrek speur- en ontwikkelingswerk)

The co-operating partner deduction (meewerkaftrek)

The start-up deduction in case of disability (startersaftrek bij arbeidsongeschiktheid)

The liquidation deduction (stakingsaftrek)

The small business profit exemption (MKB-winstvrijstelling)

Income from a main residence (eigenwoning forfait)

Other income which requires a certain level of labor (belastbaar resultaat uit overige werkzaamheden)

Lucrative interest (carried interest arrangements) (met een werkzaamheid verband houdende lucratieve belangen) (article 3.92b Dutch Income Tax Act 2001)

The compensation of losses from a substantial shareholding

Deferral and roll over facilities for income from substantial shareholding

Personal deductions and allowances for income from labor and main residence (Box 1 income) + -

Tax deduction of premiums for annuities (uitgaven voor inkomensvoorzieningen/ lijfrenteaftrek)

Personal allowance (persoonsgebonden aftrek)

Tax deductible expenses for maintenance obligations (Onderhoudsverplichtingen)

Tax deductible expenses of specific costs of care

Tax deductible weekend expenses for disabled persons

Tax deductible expenses for education - replaced

Tax deductible expenses for listed monumental buildings- replaced

Tax deductible gifts

The tax rate for Box 1 income + -

Tax rates for individuals

Box 2: income from substantial shareholdings + -

The regular income from substantial shareholdings

The deduction of expenses from regular income out of substantial shareholding

The income from the alienation of a substantial shareholding

The tax rate for income from substantial shareholding

Box 3: the income from savings and investments (inkomen uit sparen en beleggen) + -

The tax incentive for social investments (maatschappelijke beleggingen)

The amount of exempt equity (heffingsvrij vermogen)

The tax rate for Box 3 income

The amount of income tax due + -

Tax exemption or tax credit for resident taxpayers of the Netherlands in relation to foreign source income + -

The tax credit under Dutch tax treaties

The foreign income exemption under Dutch tax treaties

Personal levy rebates for resident taxpayers of the Netherlands (heffingskortingen) + -

The general levy rebate (algemene heffingskorting)

The labor rebate (arbeidskorting)

The income dependent combination rebate (inkomensafhankelijke combinatiekorting)

The young disabled rebate (jonggehandicaptenkorting)

The elderly rebate (ouderenkorting)

The single elderly rebate (alleenstaande ouderenkorting)

The rebate for green investments (korting voor groene beleggingen)

Taxation of non-resident taxpayers in the Netherlands + -

Tax registration of non-resident taxpayers in the Netherlands

The Dutch taxable income of non-resident taxpayers + -

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

A permanent establishment or permanent representative in the Netherlands

Taxable wages derived from an employment exercised or previously exercised in the Netherlands

Box 2 income: the Dutch income from a substantial shareholding for non-resident taxpayers

Box 3 income: the Dutch income from savings and investments for non-resident taxpayers

The creditable tax pre-payments for the levy of Dutch income tax

The compensation of tax losses for individuals in the Netherlands

Filing a Dutch Tax Return for resident and non-resident taxpayers

Dutch income tax assessments, tax payments and tax refunds + -

The issuance of a preliminary assessment (voorlopige aanslag)

The issuance of a final assessment (definitieve aanslag)

The issuance of an additional assessment (navorderingsaanslag)

The issuance of an ex-officio assessment (ambtshalve aanslag)

The issuance of a conservering assessment (conserverende aanslag)

The payment term for dutch income tax assessments

Remission of income tax debts

Provisional and final income tax refunds

Objection and appeal against assessments levied

Employment Relationships Deregulation Act (DBA Act)- replacement of the VAR-Statement (Verklaring arbeidsrelatie or VAR)

Glossary of important terms used in the Dutch income tax act 2001

Frederieke den Hartog

Director/ Senior Consultant - Payroll & Expat Practice

Amsterdam +31 20 570 94 49

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Frederieke den Hartog

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