taxci_en
 

The taxation of individuals in the Netherlands

Last updated: 18-12-2018

Individuals who live in the Netherlands (resident taxpayers) and individuals who live outside the Netherlands but receive income from certain Dutch sources (non-resident taxpayers) can become subject to the levy of Dutch personal income tax (in Dutch: “inkomstenbelasting”).

The levy of Dutch income tax for individuals is based on the Dutch Income Tax Act 2001 (in Dutch: “Wet inkomstenbelasting 2001”). 

The Dutch Income Tax Act 2001 is written in the Dutch language only and no official English version is available. For your convenience we have published a glossary of important terms used in the Dutch Income Tax Act 2001. This glossary will help you to identify and understand correspondence and publications in Dutch which are relevant for your Dutch tax position. 

In this section of our website you will find a description of the Dutch income tax regime for individuals, including relevant figures, such as the amount of general and specific tax deductions and allowances, the applicable tax rates, etc. 

The Dutch Income Tax Act 2001 provides an extensive amount of very detailed rules. We have summarized the main rules for you. Please feel free to consult our content and use it as convenient, but please be aware that the rules which are applicable to your specific situation can deviate from the main rules as described on this website. We strongly advise you to consult us before you draw final conclusions with regard to your own personal tax position. 

You will find the following information with regard to the Dutch income tax regime for individuals:

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)   
  Personal deductions and allowances for income from labor and main residence (Box 1 income) Tax deduction of premiums for annuities (uitgaven voor inkomensvoorzieningen/ lijrenteaftrek)  
    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

 
    Tax deductible expenses for listed monumental buildings  
     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   
    Deferral and roll over facilities for income from substantial shareholding   
    The compensation of losses from 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 rates for individuals  
    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 continuing labor bonus (doorwerkbonus) 

 
   

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 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    

The VAR-Statement (Verklaring arbeidsrelatie or VAR)  

     

What we can do for you:

We are professional tax lawyers who can advise you on your personal tax position and handle the preparation and filing of your annual Dutch personal income tax return and other tax compliance matters on your behalf.  

We have very competitive rates for individuals and we can prepare and file your personal income tax return (and take care of other personal income tax compliance) on the basis of fixed prices which are agreed upon with you in advance. 

The price for a specific tax return is dependent on your personal circumstances and the service you wish to receive from us.  

Please feel free to use our ONLINE FEE CALCULATOR for determining the fixed fee for the preparation of your personal income tax return. 

If you are interested in our services or if you have any questions, please feel free to contact us via e-mail or by telephone at our Amsterdam office at + 31 20 570 9440, or our Rotterdam office at + 31 10 201 0466. Of course you are also welcome to visit our office in either Amsterdam or Rotterdam, but please make an appointment in advance.

We are happy to make time for you!