Taxation

The Dutch government aims to create an attractive environment and welcomes knowledge workers and talent from abroad. The Netherlands is on the international list of most attractive countries to do business with. However, administrative hurdles and bureaucracy need to be targeted to make access to our country a reality.

Dutch tax system

If we look at the Dutch tax system, we have created a number of facilities that makes doing business and working in the Netherlands favourable over other countries. For individuals there is the 30% tax facility, which allows employers to cover 30% of an employee's remuneration as a tax-free expense allowance. This rule is applied for specialised foreign employees who are brought to the Netherlands because their skills are scarce in the Dutch marketplace. In this section, you will read more about the details and other aspects of taxation in the Netherlands.

Income Tax changes 2018 and 2019

Major changes in Income Taxes in the Netherlands will take place in 2019 but there will be a slight change in the tax rates in 2018. At the moment, there are officially four income tax bands but the second and third band are the same. Dutch taxpayers are charged 36.55% on earnings up to €20,000, 40.8% on earnings up to €67,000 and 52% above that. This year the mid tax band will go up marginally to 40.85% while the top band, for income over €68,500 will be 51.95%. The new system in 2019 will involve an income tax rate of 36% on earnings up to €68,000 and 49.5% for all income above that.

Belastingdienst

Visit the website of the Belastingdienst to learn about Personal Income Startement, Tax Arrangements, Benefits, Income Tax, BPM for your car and much more.
Belastingdienst in English