FINANCE
TAX • The Netherlands is a socially inclined regime; high taxation system is used and modifiable depending on your personal situation. • If filing taxes in your home country and the Netherlands is required, financial specialists can help as you enter these double taxation agreements. • The Ministry of Finance publishes a guide on the Dutch Taxation System (www.rijksoverheid.nl). The tax office is the Belastingdienst (www.belastingdienst.nl) and their website has information in English. • Taxes are completed online, and must be filed in year of migration by July 1. • Tax returns are due April 1. • Use a digital signature, DigiD (www.digid.nl), or tax consultant to file a return. The DigiD is a personal login used for all government agencies. • Particularly in the year of arrival and the year of departure, filing a tax return may result in a substantial rebate. Tax returns can be completed retrospectively for a period of five years. • Resident taxpayers must show demonstrable ties to the Netherlands and taxed on worldwide assets. • Non-resident taxpayers are those who live abroad and receive taxable income. They can apply to be treated as residents for tax purposes, such as 30 percent ruling. THE BOX SYSTEM Different categories of income are treated differently for tax purposes on the tax return and there are three types of taxable income: • Box 1: Income from profits, employment and home ownership. This includes wages, pensions, social benefits, company car, and WOZ value of owner-occupied property (maximum 52 percent) • Box 2: Income from substantial shareholding (5 percent minimum holding – 25 percent rate)
• Box 3: Taxable income from savings and investments. Income from property for instance, owned but not lived in as a main residence, is taxed here: not the actual income but the value of the asset (fictitious return: 4 percent taxed at 30 percent = 1.2 percent). Box 3 is devided in three parts: Calculating tax: the amount of tax payable is calculated by applying the various tax rates to the various taxable incomes in the boxes. The amount calculated is then reduced by one or more tax credits.
Part
Your (part of the) basis
Percentage
Percentage
Percentage Average
1
Savings and investments
0,36%
5,38%
2
Up to and incl. € 70,800
67%
33%
R.O.I
3
From € 70,801 to € 978,000
21%
79%
2,017%
WWW.EXPATFAIR.NL | THE NETHERLANDS | SURVIVAL GUIDE FOR INTERNATIONALS 2020
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