Dutch taxation system
Like much of Europe, taxes in the Netherlands are high compared to many other places. Taxrates on salaries start from 33% and can go up to the maximum of 52%. Part of these taxes consist of social security contributions. Here you can read more about the taxation system in Holland.
Do I need to pay tax in the Netherlands?
If you live in the Netherlands, you qualify as a resident taxpayer. If you live abroad and receive income from the Netherlands that is taxable in the Netherlands, you qualify as a non-resident taxpayer. In both cases, you will be subject to Dutch income tax.
How do I pay tax?
If you receive a salary, your employer will pay your tax over this salary in advance. On your payslip you read how much of your gross salary is paid to the tax office monthly. Furthermore at the end of the year you receive an annual overview of your salary and the paid taxes. This overview is called Jaaropgaaf and is important to keep for your administration.
Furthermore you can actively approach the taxoffice to file your taxes that year. It is wise to do this if you can use taxdeductions/cuts. For example, when you start work halfway the calender year, it is likely that you can apply for taxdeductions.
When you file your taxes you need to provide information on all your taxable income. Keep in mind that most scholarships (including grants, stipendia and fellowships) are also taxable income.
How much tax do I need to pay?
The total of your taxable income, the applicable taxrates, the taxcredits and possible taxcuts will decide the amount of tax you need to pay.
Your taxable income can be divided over three income-boxes. Each box has its own taxrate. The taxes paid in box 1 also include contributions to social security.
|Description of income||rate|
income from house and work.
|between 33.6% - 52%|
income for business shareholdings
|box 3||income from savings and investments||30%|
Box 1 knows a progressive rate in four steps
The first two steps also include the social security contributions (31.15 %), the third and fourth rate only consist of taxation. Your income that falls into the first box, will be taxed according to the following rates:
|Income (annual)||taxrate||social security
|€ 0 - € 17,896||2.35%||31.15%|
|€ 17,897 - €32,127||10.85%||31.15%|
|€ 32,128 - €54,776||42%||-|
|€ 54,777 and more||52%||-|
The website of the Tax Authorities offer information on the latest taxrates .
Social security contributions
If you receive salary, these social security contributions are automatically paid to the Tax Office through the monthly tax-payment whitheld from your salary by your employer.
This 31.15% consist of the following contributions:
- 17.90% towards AOW
- 1.10% towards ANW
- 12.15% towards AWBZ
For more information on the boxsystem, including a table with all the types of income and the decuctibles per box, go to the website of the Belastingdienst (Tax Authorities).
Next to taxation on income there are other forms of tax that you might encounter during your stay.
If you have questions about taxation you can call the International Tax Information Line on +31 55 538 53 85. The International Tax Information Line can be contacted from Monday to Thursday from 8 am to 8 pm and on Friday from 8 am to 5 pm.