If you live in the Netherlands, you are subjected to pay tax on your income. Some of your expenditures may be tax-deductible (deductible items).
In box 1, you pay tax on your taxable income from work and home ownership.
Income from work includes:
Income in box 1 is taxed at a progressive rate with four tax brackets. Once you have reached the state pension age, a special rate applies.
Some expenditures are deductible from your income from work and home ownership (personal allowances). The tax is calculated on the remaining amount. Your tax credits are then deducted, leaving the amount of tax payable.
In box 2, you pay tax on any substantial interests. You have a substantial interest if you, or you and a tax partner together, own at least 5% of the shares, options or profit-sharing certificates in a company. You pay 25% tax on income from substantial interests.
You pay tax on income from your wealth, including savings, shares and a second home. It is calculated as the value of all assets (such as savings and shares) minus any debts. Part of your wealth is not taxable: the capital yield tax allowance. You pay 30% tax on your taxable income from savings and investments. The government assumes a fixed return, which varies, depending on your savings and investments.
If you have any questions concerning income tax, please contact the Tax and Customs Administration.
Tax and Customs Administration? Call the Tax Information Line" />