The belastingdienst also collects taxes via sales tax or income tax (omzetbelasting), known in the Netherlands as BTW (belasting over de toegevoegde waarde). All companies, with the exception of certain foundations and associations, must add BTW to the price of their goods and services. There are three different levels of BTW: 0%, 9% and 21% (the most common rate). The Dutch pay taxes on their income, financial interest, savings and investments (these categories are called boxes). They also pay the legal costs of their paychecks, such as old-age pensions, dependency charges and a pension for orphans and widows. Whether you are a newcomer or have taken up residence in the Netherlands for a few years now, it can be quite complicated to familiarize yourself with the Dutch tax system. This is especially true if you are subject to additional control mechanisms, such as: the 30% preliminary decision or independent taxes. Anyone living or working in the Netherlands is covered by the National Insurance Schemes for Public Pensions (AOW), Survivors (ANW) and Exceptional Medical Expenses (AWBZ). Contributions are deducted by the employer from employees` salaries and paid to the Tax and Customs Authority. Employers also pay insurance premiums to employees. These contributions are paid for unemployment benefit (WW), disability insurance (WAO) and the work and income system (capacity to work) (WIA). Employers do not deduct these contributions from their employees` salaries, but pay them themselves.
The government sets the contribution level twice a year, in January and July. The Ministry of Finance (Ministerie van Financiën) is working on national tax legislation. The Belastingdienst, which is part of the Ministry of Finance, collects and collects taxes. In addition to payroll tax, social security contributions, employees` insurance contributions and income-related health insurance contributions are also deducted from employees` wages. If you earn money living in the Netherlands, you will have to pay taxes. The Netherlands is a socially responsible country, and high incomes can expect high taxes on their salary (up to 49.5%). However, your personal situation, type of work, residency status, and other assets and income (especially from abroad) will significantly affect your position. In addition to direct taxation of individuals, the Dutch government also levies certain indirect taxes, including the following: In addition to national taxes, every resident of the Netherlands must pay local taxes to his municipality (gemeente).
In general, the municipality is responsible for the following taxes: If you are a taxpayer resident in the Netherlands, you pay tax on all your income worldwide; Therefore, it makes no difference where in the world you earn your income. The tax office considers all businesses, capital gains or income in the form of periodic services to be taxable. Employees must pay income tax on their earnings. An employee is a person who agrees to work for an employer, with the employer paying wages to the employee and there is a relationship of authority between the employer and the employee. Sometimes an employee does not have an employment contract like an employee, but in other respects their relationship with the employer is similar. This is called “assumed employment,” and the employer must withhold taxes and contributions from the employee`s salary as if he or she were an employee. Cut your taxes in the Netherlands by talking to the experts at Suurmond. Their advisors provide personal advice and personal advice on a range of Dutch tax matters, helping you navigate the system easily. With over 30 years of experience, their team of experts provides advice and guidance to individuals and businesses.
As a qualified non-resident taxpayer, you will have to pay taxes in the Netherlands on more than 90% of your worldwide income. This means that you can benefit from the same deductions, tax credits and allowances as resident taxpayers. The Belastingdienst (Dutch tax authority) levies taxes on various flows. Here are the main types of taxes you are most likely to encounter in the Netherlands: To prevent employees from having to pay a large amount of income tax at the end of the year, their employers withhold payroll tax from their salaries. Income tax is considered an advance payment of income tax. However, the Dutch Income Tax Act does not specify how the benefit of the 30% rule is to be shared between the employee and the employer. Some employers (e.g. Shell) have stipulated in their terms and conditions that the 30% tax benefit goes exclusively to the company, arguing that the wages of their domestic workers would not be comparable to those of their foreign workers. The 30% tax benefit rule is then divided between an employee and the employer at the level as if the foreign employer had theoretically paid income tax on all of the company`s remaining salary and surplus. The Belastingdienst is the largest government organisation in the Netherlands that collects taxes. However, it is not the only one.
If you become a resident of the Netherlands and earn income in the Netherlands, you must file a Dutch income tax return and pay taxes in the Netherlands. What does that mean? If you have verifiable links to the Netherlands (e.g. if you live or work in the country), you will be a resident taxpayer from day one. As a resident taxpayer, the Dutch tax system taxes your assets worldwide. If you live abroad but earn taxable income in the Netherlands, you are usually a non-resident taxpayer. There is a simple answer to this question if your worker is Dutch and lives in the Netherlands. Anyone who lives in the Netherlands or earns income in the Netherlands is subject to income tax, which is paid to the Dutch tax and customs authorities. This means that your Dutch employees will have to pay taxes, which they will do by filing a tax return, but since some of their taxes are deducted from their paycheck, you also pay taxes on their behalf. If you live outside the Netherlands but pay tax on most of your annual income in the country, you belong to the category of eligible non-resident taxpayers. If you live in an EU or EEA Member State, Switzerland or one of the special municipalities of the Netherlands (Bonaire, Saba or Sint Eustatius), you belong to this category.
Let us talk about taxes. In the Netherlands, public and private companies pay corporation tax on their profits. Depending on the scenario, this can also apply to foundations and associations. Some organizations are also exempt from corporate income tax, such as investment tax institutions. Whether you are a Dutch citizen or an expat, you will have to pay taxes if you earn money while living in the Netherlands. Companies (including the self-employed) must calculate the BTW they have earned and spent via the quarterly VAT return (BTW aangifte). They then pay this amount to the Belastingdienst. A list of other types of taxes can be found at the bottom of this page.
In addition, the Netherlands has different tax rules on self-employment. This guide to the Dutch tax system contains the following information for expats: Imagine that your best employee leaves your country and moves to the Netherlands. She wants to continue working with your company and your organization is set up for remote work. Although you want to employ them, this move to the Netherlands is for you. Does the cost of keeping your employee in the Netherlands mean income taxes for your business? As in many other municipalities in the Netherlands, Amsterdam collects local taxes from its residents.