Moving to another country can be overwhelming, but it is important to understand the income tax system and how it works.
Effective tax planning is not only important during tax season, but also during the process of immigrating, starting a job, or even buying or selling your own property. This guide sponsored by tax specialists J. Suurmond explains how to file your income tax return in the Netherlands, and includes the following information:.
Suurmond Tax consultants provide tailor made advice and personal guidance on tax matters.
Netherlands Annual Salary After Tax Calculator 2019
With over 30 years experience, the organization is a fully-developed tax advisory office, for both private individuals and companies. The Dutch Tax and Customs Administration Belastingdienst is the entity of the Ministry of Finance, and is responsible for collecting taxes and social security contributions.
Tax revenues finance government expenses such as social security benefits and subsidies for culture, housing, childcare, healthcare, and pensions.How EXPENSIVE is it to live in The Netherlands? - COST OF LIVING IN HOLLAND - Jovie's Home
To calculate your taxable income, you need to aggregate your income in these three boxes:. When you register in a Dutch city council or town hall, the tax authorities will be notified automatically and issue you a BSN number the Dutch social security number.
They will then regard you as a domestic taxpayer, with all the advantages and disadvantages of a regular Dutch taxpayer. The registration is mandatory to live and work in the Netherlands. If you work for a company as an employee, you must pay personal income tax and social security contributions. Withholding income tax wage tax at source is one of the obligations of the employers in the Netherlands during each pay-cycle.
Your employer will also withhold contributions to health insurance, unemployment, and pension funds national insurance contributions during the payroll process. As a result, you avoid having to pay a large amount of income tax as a lump sum. In summary, wage tax and national social insurance contributions are advance payments for income tax. Although your employer withholds your income tax, you still need to file a tax return. Even if you have not received the letter from the Tax Administration with the provisional assessment, you may still need to file a tax return.
In addition to VAT, self-employed people and freelancers must pay income tax over their taxable earnings. This is your income minus deductible items and fiscal allowances. Every year, you will receive a declaration letter from the Dutch Tax Office to file an income tax return. If you live in the Netherlands or receive income from the Netherlands, you must pay income tax in the country. You will pay tax on your income, savings and investments, and even your financial interests in a company if this is the case.
Those who are eligible for this benefit can choose the partial non-resident taxpayer status; this means they are a non-resident taxpayer for part of the income tax. Essentially, if you opt for partial non-resident taxpayer status, you will pay less tax in the Netherlands.You may also wonder if you are receiving a fair wage. Here is some general information to help you understand how salaries are taxed, what salary you can expect depending on your experience and industry and what the minimum wage is in the Netherlands.
One of the most important things to understand about your Dutch salary is the difference between your gross and net salary. Your gross salary bruto salaris is the total amount of your salary before tax and other costs are deducted. Your net income netto salaris is your salary after income tax, social security payments and contributions for your pension have been deducted.
The net salary is the amount that is deposited in your bank account each month. When discussing your salary, your employer will almost always refer to the gross monthly amount.
Be sure to check the net amount as there is a quite a difference between the two values. For example, if your salary is 2. Use a salary calculator to get an indication of your net monthly income. Some employers also offer performance-based bonuses which may be paid out on a monthly, quarterly or annual basis.
Your monthly salary, holiday allowance and any bonuses or benefits all add up to equal your total annual income. In the Netherlands, employees receive a payslip loonstrook from their employer each time they are paid. The payment breakdown on Dutch payslips can be hard to interpret. Here is an overview of the main terms used:. Your payslip may also state which social security premiums sociale verzekeringen you contribute to and are covered by. Social security premiums can include:.
According to the Centraal Planbureau CPBin the median gross income for a person working in the Netherlands is A salary can vary greatly from the median income as it is influenced by age, sector, professional experience and hours worked.
We explore some of these factors in the tables below. Source: CBS, year: Below is an overview of entry-level salaries in the Netherlands. These amounts are based on the average starting salaries of Dutch high school and university graduates one and half years after they completed their studies. Source: Gemiddeld Inkomen. If you are more advanced in your career, or you were recruited from abroad, most likely your salary is already higher.
To get a specific indication of your salary in the Netherlands, make use of the Salariskompas in Dutch. The legal minimum wage minimumloon in the Netherlands is based on age and is revised every six months in line with inflation.
The minimum wage is based on a full-time employee working between hours a week. Home Career Working in the Netherlands. Salary, minimum wage and payslips in the Netherlands. Salary, minimum wage and payslips in the Netherlands 0. Gross salary and net income in the Netherlands One of the most important things to understand about your Dutch salary is the difference between your gross and net salary.Click here for more insights from Deloitte.
No responsibility is taken by Deloitte for any errors or for any loss, however occasioned, to any person by reliance on this calculator. Note - All figures in Euros, all figures rounded up to nearest Euro. It is assumed that the individual qualifies for pension relief. You may, due to the changes announced in the budget, need to check this with your pension adviser. Budget Tax Calculator. You may get tax relief on contributions to approved personal pension arrangements. This relief is more generous as you get older.
These occupations include professional athletes. There is a limit on the earnings that may be taken into account. State marital status? Are you an employee? Are you a proprietary director?
Are you a controlling shareholder? If married, do both spouses have income? If married, is your spouse employed? Do you have a child in respect of whom you are in receipt of child benefit? Are you the principal carer for the child ren? What is your age range? If married, what is your spouse's age range?
Your Income Employment or self-employment income. Have you made a qualifying pension contribution? Age attained during ? How much did you pay? Age Amount which qualifies for tax relief Under 30 years. If married, your spouse's income. Do you employ a carer for an incapacitated person? If Yes - how much do you pay? Do you have a company vehicle? Is the vehicle an electric vehicle? Does the vehicle derive its motive power exclusively from an electric motor? Was the electric vehicle first made available to you during the period 10 October to 9 October ?
If Yes - what is the original market value of car? What is the annual mileage in KM relating to business use? Do you make any payments to your employer for use of the company car? If yes - enter amount of annual payment. Have you received a loan from your employer at a preferential interest rate?The Annual Wage Calculator is updated with the latest income tax rates in the Netherlands for and is a great calculator for working out your income tax and salary after tax based on a Annual income.
The calculator is designed to be used online with mobile, desktop and tablet devices. Review the full instructions for using the Netherlands Salary After Tax Calculators which details the Netherlands tax allowances and deductions that can be calculated by altering the standard and advanced Netherlands tax settings. Calculate your annual take home pay in that's your annual salary after taxwith the Annual Netherlands Salary Calculator.
A quick and efficient way to compare annual salaries in the Netherlands inreview income tax deductions for annual income in the Netherlands and estimate your tax returns for your Annual Salary in the Netherlands.
The Annual Netherlands Tax Calculator is a diverse tool and we may refer to it as the annual wage calculator, annual salary calculator or annual after tax calculator, it is however the same calculator, there are simply so many features and uses of the tool annual income tax calculator, there is another! Netherlands Annual Salary After Tax Calculator The Annual Wage Calculator is updated with the latest income tax rates in the Netherlands for and is a great calculator for working out your income tax and salary after tax based on a Annual income.
Number of hours worked per week? Number of weeks for weekly calculation? Employment Income and Employment Expenses period? Simple Advanced. Resident Non Resident.Use our Dutch tax calculator to find out how much income tax you pay in the Netherlands. Sole traders self employed receive additional tax credits lowering the total amount of tax paid.
Dutch Tax Refund Calculator 2016
Select ' Self Employment ' to calculate your net income if you are a sole trader. If you are entitled to a tax credit or a tax refund from a broken tax year, deductible items such as the mortgage rebate, study expenses, medical expenses, or special childcare expenses, file for an income tax return with us to receive your refund. If you are entitled to a refund for the current year and you would like to receive your refund early, file for a provisional tax refund with us.
You receive your money within a couple of weeks. More information about this and how we can help you with your tax matter, you can find here. Do a complete and accurate calculation of your Dutch income tax for free. Then decide if you want to pay us to check and file it to the Belastingdienst. All we need to get you started is your email address:. Income Tax Return Caluclator.Income tax in the Netherlands personal, rather than corporate is regulated by the Wet inkomstenbelasting Income Tax Law, The fiscal year is the same as the calendar year.
Before May 1 citizens have to report their income from the previous year. The system integrates the income tax with fees paid for the general old age pension system AOWthe pension system for partners of deceased people ANWand the national insurance system for special medical care WLZ. There are three categories of income, each with their own tax rates.
They are referred to as "boxes". There is a progressive tax on wages, social security benefits and pensions. Thus there are tax bracketseach with its own tax rate. Mathematically, apart from discretization whole euros both for income and for taxthe tax is a continuous, convexpiecewise linear function of income.
Forthe total tax on income income tax plus mandatory pension, social security and state funded medical care payments, all of which are a percentage of income up to a maximum for people under the age 65 is as follows:. Inthe tax brackets for income in Box 1 for persons below the official retirement age were:   .
Inthe tax brackets for income in Box 1 for persons below the official retirement age are:  . Which decreases the effective tax rate. Under certain conditions a life annuity is treated as a pension: premiums are deducted from the income, the benefits are taxed, and the scheme is not counted as asset in box 3. The conditions concern the type of life annuity and the necessity, based on the principle that the higher the income is, the more pension plus life annuity one needs to build up for the future, up to a maximum.
For the value of an owner-occupied dwelling and for mortgage debt related to that, this box and not box 3 applies. Based on the value of the dwelling, a "fixed rentable value" is counted, while interest for the mortgage is deductible. This is an important factor, since interest on a mortgage can easily be over a thousands euros per month, which is subtracted from income before any income tax is applied.
If the value of an owner-occupied dwelling would be positive fixed rentable value is greater than interest it is changed to zero. For taxpayers above the official retirement age reduced rates apply for the first two brackets. Inthe corresponding tax rates are Inthe retirement age in the Netherlands was postponed from 65 years and 9 months to 66 years.
Taxation in the Netherlands
The wage withholding tax is a deduction of wages, social security benefits and pensions, as an advance payment for the income tax, paid through the employer, etc. See also box 1 in Dutch. From there is a new national health insurance scheme zorgverzekering swetZvw. The premium is partly income-dependent and paid as a tax supplement.
It applies for the "contribution income" bijdrage-inkomenwhich is part of box 1, including labor income, social security benefits, pensions, and life annuities it does not include the "owner-occupied dwelling income". It is withheld if the wage withholding tax applies.
The rate is 7. The total income for which these rates apply is limited to ca.
See also box 2 in Dutch. There is a flat tax on the total value of the savings and investments of 1. The amount of money invested in approved "green" investments up to EUR 56, is exempted.The Income tax rates and personal allowances in the Netherlands are updated annually with new tax tables published for Resident and Non-resident taxpayers.
The Tax tables below include the tax rates, thresholds and allowances included in the Netherlands Tax Calculator Taxes, including personal income tax, expenses and limitations are reviewed by the Government in the Netherlands periodically and typically updated each year. Not that not all tax rates and thresholds in the Netherlands change annually, alterations to tax policy to support strategic economic growth in the Netherlands mean that the certain areas may be focused on to provide specific tax relief in the Netherlands or support growth in certain areas overseas invstment in the Netherlands for example may mean reduced non-resident income tax rates in the Netherlands for a period.
When tax policy in the Netherlands changes, the resultant tax tables also change. Netherlands Tax Tables may also be referred to as the Netherlands Tax Slabs, the Netherlands personal allowances and tax thresholds or the Netherlands business tax rates.
In the section, we publish all tax rates and thresholds used within the Netherlands Salary Calculator. This means that if you are aware of a tax exemption or tax allowance in the Netherlands that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Netherlands Salary Calculator.
This is simply because we updated our tax calculators based on user feedback, we tailor the Netherlands Salary Calculator to suit our users needs. Our aim is to keep tax calculations in the Netherlands simple, we achieve this my making the Netherlands tax calculators relevent to our community's needs, this includes you. So, if you would like a new tax rates, allowance or threshold adding or perhaps updatingor if you notice an error in our tax calculations, simply contact us and we will adjust the tool.
Choose a specific income tax year to see the Netherlands income tax rates and personal allowances used in the associated income tax calculator for the same tax year. Netherlands Income Tax Rates and Personal Allowances in The Income tax rates and personal allowances in the Netherlands are updated annually with new tax tables published for Resident and Non-resident taxpayers.