Tax in the Netherlands
Can you give me an overview of the Dutch tax system?
What taxes will I have to pay in the Netherlands?
What types of indirect taxes are there in the Netherlands?
What dates does the tax year cover in the Netherlands and when do I need to provide a tax return?
How can I get help with my tax return?
How do I know if I must pay income tax?
How do I submit my tax return?
How is my income assessed?
Can I claim any tax benefits against my declared income?
Everyone is entitled to a general tax credit. However, the amount that you will be entitled to is dependent upon your age. It should be noted that there is a larger decrease in general tax credit entitlement for those who are at the top income tax tier.
You may be entitled to other credits which will either be part of the income tax assessment or come under social security. In general, people who are not covered by the Dutch social security system are not entitled to the social security section of the tax credit. Examples of tax credits are:
- Salary/wage from employment
- Work bonus
- Income-related combination tax
- Single parent tax credit
- Parental discount
- Tax credits for AOW (state pension) beneficiaries
- Temporary tax credit for early retirees
- Young disabled discount
- Discount for green investments
Your employer will take the general tax credit into account when deducting wage withholding tax but not any other personal circumstances. You can claim other allowances and potential refunds when you file your tax return or request a provisional refund.
Where possible, partners are taxed individually but, when only one partner works, the other partner is generally entitled to a refund of general tax credit and deductible expenditure can be apportioned to take advantage of tax credits.
Details of income tax deductions and entitlements are provided (in Dutch only) on the Belastingdienst (Tax authorities) on Belastingdienst.nl and general information on taxes can be found on government.nl/topics/income-tax/types-of-income-tax.
We would always recommend that you seek professional advice to get the appropriate guidance depending on your personal situation. If you need a list of tax and financial advisors in your area, please contact the ACCESS Helpdesk here or check the Partner page.