If you are a taxpayer residing in the Netherlands, you pay taxes on all your income worldwide; Therefore, it makes no difference where in the world you earn your income. The tax office considers as taxable all business, employment or investment income or income in the form of periodic benefits. There are three categories of income, each with its own tax rates. They are called “boxes”. The Netherlands taxes its residents on their worldwide income; Non-residents are only subject to tax on income from certain sources in the Netherlands (mainly employment income, directors` fees, business income and income from Dutch real estate). Most people can file their tax returns online. However, in some cases, it is necessary to file a paper tax return. This applies, for example, if you only lived in the Netherlands for part of the previous year or if you are filing a tax return for a deceased person. In both cases, you need to have personal information at hand. as well as details of your income, bank accounts and assets. If you have demonstrable links with the Netherlands (e.g.
B if you live or work in the country), you are a resident taxpayer from day one. As a resident taxpayer, the Dutch tax system taxes your assets worldwide. If you live abroad but earn taxable income in the Netherlands, you are usually a non-resident taxpayer. This year, there have been no major changes in tax brackets and rates. The only change is a reduction in the tax rate in the first tax bracket. You can see this change in the tables below. The 30% verdict is a tax incentive for workers recruited abroad who bring specific skills to the Netherlands. The tax benefit is calculated based on your gross annual salary. Of this total amount, 30% is exempt from income tax. In addition, with the exception of retirement bonuses, all your premiums, vacation pay and other benefits are subject to the decision. From 2006 there will be a new national health insurance (zorgverzekering (swet), Zvw). The premium depends in part on income and is paid in the form of a tax surcharge.
It applies to “contribution income” (bijdrage-inkomen), which is part of box 1, including income from work, social security benefits, pensions and life annuities (it does not include “income from owner-occupied residential property”). It is withheld when payroll tax is due. The rate is 7.1% for e.B wages and 5% for e.B life annuities, in addition to the above tax rates. The total income to which these rates apply is limited to approximately €50,000. If you rent a property in the Netherlands that you own, the value of the property – the WOZ value – is taxed minus the amount of the mortgage. Rental income is taxed in box 3, where you report all savings and investment income in the Netherlands. If you decide to rent out your property, you will no longer deduct mortgage interest. If you live outside the Netherlands while renting a Dutch property, not all assets fall into this category. If you have this status, you are considered a non-resident taxpayer for part of the income tax.
If you choose to do so, you will essentially pay less tax in the Netherlands. For 2010, the total income tax (income tax plus compulsory pension, social security and state-funded medical care, all of which belong to a maximum amount of income) for people under 65 is as follows: the tax rate on savings and investment income will be increased to 31%. Expats with the 30% advance ruling can choose to be exempt from savings tax and most investments in the tax return. The inheritance tax rates in the Netherlands for 2021 are as follows: For the year 2021, the TaxSavers have clarified some tax tips: The combined rates in Box 1 for people under retirement age Regional water boards (Waterschappen) have rates for flood protection (maintenance and control of water levels) and clean water. If you own land, buildings or nature reserves in the Netherlands – or if you live or use business premises – you will have to pay an annual water tax (waterschapsbelasting). If you are a non-resident taxpayer in the Netherlands, you will only pay taxes on any income that can be received in the country. This includes income from work, running a business, regular benefits, income from real estate in the Netherlands or part of a stake in a Dutch company. However, certain income earned outside the Netherlands may also be taxable. The filing period for your annual tax return runs from March 1 to April 30, unless you or your accountant request an extension (uitstel aangifte).
You can do this via the BelastingTelefoon website or Belasting Service (you will need your DigiD). If you don`t file your tax return by May 1 or if you apply for an extension, you could be fined. If you move to the Netherlands, you will obtain resident taxpayer status. This means that you pay income tax and social security contributions. However, if you have specific expertise, you may be subject to special tax regulations. The sum of the income in the three boxes is the “threshold income”. It sets thresholds for tax deductions, for example for donations. B (see below). If you are not insured in the Netherlands, but in the country from which you were transferred (based on an A1 declaration or a certificate of coverage), you will not pay social security premiums in the Netherlands, which will reduce the amount withheld from your salary or self-employed income. The amount of money you can inherit before you have to pay taxes depends on your relationship with the deceased. The Dutch rates of inheritance tax and gift tax are the same.
The Dutch financial year runs from 1 January to 31 December. In January, you will receive an Aangifte letter from the belasting service asking you to complete a tax return for the previous year. If your financial affairs are simple and do not include any of the above, you may not receive a letter and may not need to file an annual tax return. You can always go to a Belastingdienst branch or call the BelastingTelefoon on 0800 0543 to find out if you need to fill out a tax return and/or request the letter. Withholding tax on wages is a deduction of wages, social benefits and pensions, as an advance payment of income tax, paid by the employer, etc. In addition to tax brackets, there are income-related deductions for income up to €90,710. This lowers the effective tax rate.  The fiscal year corresponds to the calendar year.
Before May 1, citizens must declare their income for the previous year. The scheme integrates income tax with fees-based costs of the General Old-Age Pension Scheme (AOW), the Deceased Partners` Pension Scheme (ANW) and the National Special Health Insurance Scheme (WLZ). The biggest change in the Dutch tax system in 2021 is a significant increase in tax-free capital. In 2021, the tax-exempt capital increased from €30,846 to €50,000 if you do not have a tax partner. If you have a tax partner, the tax-exempt capital has increased from €61,692 in 2020 to €100,000 in 2021. From now on, only their capital will be taxed above € 50,000 (or € 100,000 if you have a tax partner). This saves many people a lot of money. 2020: An annual income of €45,000 had a tax rate of 37.35%. .