![]() ![]() There are no local taxes on income in the Netherlands. Please note that the tax rate of box 2 will be adjusted by 2024, by introducing two new brackets: a basic rate of 24.5% for the first EUR 67,000 in income per person and a rate of 31% for the remainder.īox 3 income (deemed return on savings and investments) is taxed at a flat rate of 32%. * In the first bracket of box 1, national insurance tax is levied at a rate of 27.65%.īox 2 income is taxed at a flat rate of 26.9%. 5 lakhs but less than Rs 10 lakh per annum under the old tax. ![]() 2023 rates for box 1 income Taxable income (EUR) A higher Income Tax Slab rate for AY 2022-23 at 20 is applicable to individuals who earn over Rs. Benefits relating to income provisions.īox 2 refers to taxable income from a substantial interest.īox 3 applies to taxable income from savings and investment ( see the Income determination section for more information).Home ownership of a principal residence (deemed income).An individual's taxable income is based on the aggregate income in these three boxes.īox 1 refers to taxable income from work and home ownership, and includes the following: In the Netherlands, worldwide income is divided into three different types of taxable income, and each income type is taxed separately under its own schedule, referred to as a 'box'. You can also find more information about the Dutch tax system on our website.The Netherlands taxes its residents on their worldwide income non-residents are subject to tax only on income derived from specific sources in the Netherlands (mainly income from employment, director’s fees, business income, and income from Dutch immovable property). 2022 tax rates: Long-term capital gains (LTCG) and Qualified dividend income (QDI) LTCG and QDI tax rates, Single, Married Filing Separately 0, 0 41,675. Tax returnĭo you need help with your Dutch tax return? Expatax can help you. There are also other specific tax credits depending on your situation but the above are the common tax credits. ![]() If you have children additional tax credits can apply. Labour tax credit (max for incomes above € 69,398) € 0.Labour tax credit (max for lower incomes) € 4,260.Personal tax credit for partner without income born before 1 January 1963 € 2,837.Personal tax credit for partner without income born after 1 January 1963 € 379.Personal tax credit (max for incomes above € 69,398) € 0.Personal tax credit (max for lower incomes) € 2,888.Tax creditsĪfter the tax has been calculated based on the above percentages you can reduce the calculated amount with the applicable tax credits. Expats with the 30% ruling can opt in the tax return to be exempted from taxation on savings and most of the investments. The tax rate for income from savings and investments is increased to 31%. Backward tracing is applicable under Dutch GAAP and IFRS. Rate Box 3 (income from savings and investments) This implies that all deferred taxes on 31 December 2021 should be measured at 25.8 (instead of 25). Rate Box 2 (income from a substantial interest in a limited company)įor the year 2022 the tax rate for income from a substantial interest is 26.90%. ANW (General Surviving Relatives Act): 0.1%.AOW (General Old-age Pensions Act ): 17.9%. ![]() Total premium for the national insurance is 27.65% which is divided in: National insurance premiums (premiums social security) If you are not insured in the Netherlands but in the country where you were transfered from (based on a A1 declaration or Certificate of Coverage) then you don’t pay premiums social security in the Netherlands thus reducing the amount which is withheld from your salary of freelance income.įor the year 2022 the tax rate and premiums for income from work and home are:Ĭombined rates in Box 1 for persons younger than retirement age Taxable income VOLKSVZ for premiums national insurance or premiums social security. VOLKSVZ” where LB stands for wage tax and PR. On your payslip or year end statement you may see something like: “ingehouden loonheffing” or “LB/PR. Premiums social security are calculated in the first bracket. The rate in Box 1 is a combination of tax and premiums social security. ![]()
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