If the final calculation differs from the provisional calculation, you will either get a refund or have to pay the difference. Expatica uses technology such as cookies and scripts to personalize content and ads, provide social media features, and analyze our traffic. The Netherlands is a socially conscious country, and higher earners can expect a substantial taxation of their salary (up to 49.5%). When you become a Dutch resident and earn an income in the Netherlands, you need to file a Dutch income tax return and pay taxes in the Netherlands. Buying a Dutch property often goes hand in hand with getting a Dutch mortgage. If you have income from another country, or you live outside the Netherlands and have a Dutch income, then you usually need to do the annual Dutch income tax return. As the Dutch tax system can be fairly complicated, there is a wide range of taxation professionals and services in the Netherlands ready to help you. If your income is low, you can apply for the small business tax scheme (kleineondernemersregeling). Investments in forests, nature or certain green, social, ethical, cultural or startup projects. The value of your assets, minus debts, is calculated once annually, on January 1, to determine your net capital value. You can file digital tax returns via “My Tax and Customs Administration” (Mijn Belastingdienst), or via “Entrepreneur login window” (Ondernemers); both are only available in Dutch. You can do this via the BelastingTelefoon or the Belastingdienst website (you'll need your DigiD). In 2020, if the taxable amount is less than €200,000, a corporate tax rate of 16.5% applies. The amount of tax you have to pay in the Netherlands will depend on your residency status. All member states can retain a portion of the import duties that they collect to cover collection costs. The transfer tax must be paid by a buyer when purchasing a property or business. If you miss the deadline, you will receive a fine. The time period for submitting your annual income tax return is from March 1 to April 30, unless you or your accountant request an extension (uitstel aangifte). If you are employed by a company then your income tax will be withheld from your salary by your employer, this is known as wage tax (which is contained within payroll tax). Regional water boards (waterschappen) have rates for flood protection (maintenance of dykes and control of water levels) and clean water. Moveable property such as furniture, art or a car (unless they are an investment). Alimony and other maintenance obligations. The Belastingdienst has a broad interpretation of who your tax partner (fiscaal partner) can be. Then you need to complete the form with your personal information and attach the original receipt. Those who are eligible for the 30% ruling may choose to be part of the partial non-resident taxpayers’ category. Here is a selection of articles, news and features you may also like. The Belastingdienst (Dutch tax office)collects taxes through a variety of streams. Tax revenues largely finance government expenses. You can find a list of tax advisors in Amsterdam in our directory. Starting your own business? This means that you will be paying income Not every shop does, however the affiliated shops display a sticker on their door indicating they do. Some categories of direct taxation levied by the national government are: Besides the direct taxation for individuals, the Dutch government also charges some indirect taxes, as follows: The Belastingdienst is the main government organization in the Netherlands which collects taxes, however it is not the only one. There are some issues expats in the Netherlands need to deal with e.g. This tax is paid when you buy or import a motor vehicle, or when a vehicle is put under your name. Whether you're a Dutch citizen or an expat, you are required to pay taxes if you earn money while living in the Netherlands. To file your tax return online you will need your DigiD or a username/password combination. The Belastingdienst also collects taxes via the sales or revenue tax (omzetbelasting), known in the Netherlands as BTW (belasting over de toegevoegde waarde). Inheritance consists of all assets and debts that a deceased person leaves behind; for example, a sum of money or a precious object. What are the requirements for this tax advantage? Receive the IamExpat Weekly and Special Offers from our Partners. For foreign workers whose 30% facility is due to end in 2019 or 2020, as a result of this reduction, the government will implement a transition period. This income was taxed at 30%, which lead to an effective flat tax rate of 1,2% on assets. Freelancers and self-employed professionals are considered entrepreneurs for the purposes of turnover tax (VAT). The term for this is WOZ-waarde, or immovable property tax. Find out! Temporary stay at a home for the severely disabled. However, at the end of each year, you need to file a tax return (belastingaangifte) and declare your income and assets. Endowment insurance policy (if not connected to an owner-occupied residence). The three boxes of income are treated differently for tax purposes on the tax return. Have a cookie For example, this applies if you only lived in the Netherlands for part of the previous year or file a tax return for a deceased person. In 2018, you can have assets with a value of up to 30.000 euros as an individual, and 60.000 euros as a couple, without them being taxed. Which cookies and scripts are used and how they impact your visit is specified on the left. In both cases, you must have some personal information at hand; as well as details about your income, bank accounts, and property. If you live outside of the Netherlands while letting a Dutch property, not all assets fall under this category. Tourist tax for holiday rentals, bed & breakfasts, and short-stay accommodation will be 10% of the turnover; excluding VAT and tourist tax. In some cases, you also have to pay excise duty, consumption tax, and Some assets are exempt from being taxed in Box 3, these include: The 30% reimbursement ruling is a tax advantage for certain expat employees in the Netherlands. This includes window advertising, advertising on façades, flags, bus and tram shelters, and large menus. However, some income earned outside of the Netherlands may be also taxable. The 30% ruling is a tax incentive for employees, who are recruited from abroad and bring specific skills to the Netherlands. The property you live in (if you own it). The payroll tax levy is made up of tax on your salary (wage tax or loonbelasting) and national insurance contributions for pensions, unemployment allowance and other Dutch benefits and allowances. Income as a freelancer, artist, childminder or professional athlete. ), weight and type of fuel. In addition to the national taxes, every resident in the Netherlands must pay local taxes to his/her city council (gemeente). Each box applies to different kinds of income and has a different tax rate. This means that they must charge and pay VAT on their income. The VAT rate is the same as that which applies to supplies of goods and services in the Netherlands. Meanwhile, pension-age residents are typically allowed an extra threshold of 50%, up to a certain amount. Dutch inheritance tax rates and gift tax rates are the same. Looking for taxation advice and services? The total amount of tax payable is calculated by applying the various Dutch tax rates to the different taxable incomes in the boxes. other levies. If you don’t fulfil these criteria, and you are not employed by your customer, you are not entitled to claim certain tax deductions that are available to entrepreneurs. If you do not submit your tax return or request an extension before May 1 then you can be fined. You need to take into consideration some parameters to determine your situation. However, your personal situation, type of work, residency status, and other assets and earnings (particularly from abroad) will affect your position considerably. Payroll tax is tax and other contributions that are withheld from an employee’s salary by the employer, which saves the employee from having to pay them later as income tax. The amount calculated is then reduced by one or more tax credits. The authorities collect the duty and transfer the sums collected to the EU. You can find an extensive list of goods and services for this tariff in the link. If you have demonstrable ties to the Netherlands (for instance, you live or work in the country), then you are a resident taxpayer from day one. Personal income tax for employees Personal income tax for employees 2020 If you are a non-resident taxpayer in the Netherlands, you will only pay tax on any income that may be levied in the country. This includes employment income, running a business, periodic benefits, income from real estate in the Netherlands, or part of a shareholding in a Dutch company. The income tax return for entrepreneurs is the same as it is for citizens. Some services are exempt from VAT, such as journalists and translators. Expenditure on income, such as premiums for annuities. However, if you have specific expertise, The import tax also applies to Internet purchases. The VAT refund can be deposited on your credit card or cashed in a currency of your choice. Learn about the ondernemersaftrek (entrepreneurs’ deduction) tax benefits for expat and local entrepreneurs. If you rent out a property in the Netherlands that you own, the value of the property – the WOZ-value – is taxed, minus the mortgage amount. That said, the lower rate will decrease to 15% in 2021; and the standard rate will reduce to 20.5% in 2021. For the latter, you will need to satisfy several conditions. Read more in our Guide to filing your Dutch tax return. Tax on capital above the tax-free amounts is calculated according to three brackets (2020): Previously the Belastingdienst assumed you earn an income (voordeel) of 4% from the value of your assets. Every taxpayer in the Netherlands is entitled to receive the general tax credit (algemene heffingskorting) and every working person is entitled to receive the labour tax credit (arbeidskorting or loonheffingskorting). Expatica helps make your expat journey the experience you've always wanted. Businesses (including freelancers) must calculate the BTW they have earned and spent via the quarterly sales tax declaration (BTW aangifte). The amount will be credited to your credit card within a few weeks. If you import Box 3 covers income from assets such as savings and investments. There are four categories in which you can fall into: If you are a resident taxpayer in the Netherlands, you will pay taxes on your entire income worldwide; therefore it makes no difference where in the world you earn your income.