2023 TAX BRACKETS PROFESSIONAL

Income as a freelancer, artist, childminder or professional athlete.īox 1 deductions include, amongst others:.Check the table below to see the rate(s) that apply to your gross salary. Income in Box 1 is taxed at different rates depending on how much you earn. Here is an overview of the box categories and their different income sources: Box 1: Income from salary Each box applies to different kinds of income and has a different tax rate.

Income on the Dutch tax return in the Netherlands is divided into three categories: Box 1, Box 2 or Box 3 (named after the tick boxes on the form). If you do not submit your tax return or request an extension before May 1 then you can be fined. You can do this via the BelastingTelefoon or the Belastingdienst website (you'll need your DigiD). The time period for submitting your annual income tax return is from March 1 to April 30, unless you or your accountant request an extension ( uitstel aangifte). What is the deadline for the Dutch tax return? You can always visit a Belastingdienst branch office or call the BelastingTelefoon on 0800 0543 to find out if you need to complete an income tax return and/or to request the letter. If your financial affairs are simple and do not include any of the above elements then you may not receive a letter and you may not need to submit an annual tax return. In January, you will receive a letter ( aangiftebrief) from the Belastingdienst asking you to complete a tax return for the previous year.

The Dutch fiscal year runs from January 1 to December 31. Tax deductions such as studies or healthcare costs.Additional income, savings or investments.The tax return is necessary to balance out your 'prepaid' tax with other financial aspects such as: The Dutch tax office will inform you if you are required to do so. Annual income tax return ( aangifte inkomstenbelasting)Įven though wage tax has already been withheld from your gross salary as an advance levy or payment on your income tax, you often still need to complete an annual income tax return. A list of other kinds of taxes can be found at the end of this page. They then pay this amount to the Belastingdienst. There are three different levels of BTW: 0%, 9% and 21% (the most common rate).īusinesses (including freelancers) must calculate the BTW they have earned and spent via the quarterly sales tax declaration ( BTW aangifte). All businesses, excluding some foundations and associations, must add BTW to the price of their goods and services.

The Belastingdienst also collects taxes via the sales or revenue tax ( omzetbelasting), known in the Netherlands as BTW ( belasting over de toegevoegde waarde). There is a large difference between your gross salary ( bruto salaris) which includes tax, and your net salary ( netto salaris), after tax is deducted. It's important for expats to keep the deduction in mind when discussing salary and employment contract terms for a new job. Your payroll tax is deducted from your salary every month. The payroll tax levy is made up of tax on your salary (wage tax or loonbelasting) and national insurance contributions for pensions, unemployment allowance and other Dutch benefits and allowances. Payroll tax is tax and other contributions that are withheld from an employee’s salary by the employer, which saves the employee from having to pay them later as income tax. If you are self-employed in the Netherlands then you must calculate and pay your income tax via the annual tax return. If you are employed by a company then your income tax will be withheld from your salary by your employer, this is known as wage tax (which is contained within payroll tax).

2023 tax brackets