In the Netherlands there are numerous different kinds of Dutch sandwich tax. In this FAQ we provide you with general information regarding the taxes mentioned below. If you would like to know more about us as Dutch tax advisors we refer to our homepage or the about us section. For individuals who need to file their personal income tax return click herefor general information including our services and fixed fees.
The most common questions relate to the various types of taxes levied in The Netherlands. In this FAQ about Dutch taxation we provide a brief outline regarding the following topics:
- 1. Dutch tax / Netherlands tax
- 2. Dutch taxes / Holland taxes / Netherlands taxes
- 3. Dutch income tax / The Netherlands income tax
- 4. Dutch tax system / Netherlands tax system
Dutch tax is tax that is levied in the Netherlands. The Netherlands has a vast array of tax subjects and tax objects. The person who is subject or liable to Dutch tax can typically be separated from the object which attracts the tax. Dutch tax or Netherlands tax is typically referred to as the tax which is levied in The Netherlands. Tax can be levied by government bodies as the State, province or municipality.
The Netherlands have various different kind of Dutch taxes. The most noteworthy Dutch taxes are the Dutch income tax (max 52%), the Dutch value added tax (max 21%) and the Dutch corporate income tax (max 25%). However, there are also other taxes in Holland such as, Dutch property tax, Dutch immovable property transfer tax, Dutch gambling withholding tax, Dutch inheritance tax and the Dutch gift tax. A separate item is the Dutch wealth tax which amounts to 1.2% and is viewed as an income tax by the Dutch government.
The Dutch income tax is levied from Dutch individuals who have certain types of income. The Netherlands income tax for individual is levied at a rate up to 52% (as from approximately EUR 56K). The income types are limited as they need to be form a source of income. If a certain type of income is not defined as a source, it is not regarded as income and as such it is not taxable. As an example the gambler who earns money by gambling has a source of income. Because the gambler invests time and money and the outcome of his investment is reasonably certain to be profitable, the gambler has a source of income. The gambler who is not successful in gambling has e mere hobby and thus cannot deduct his losses. Please note that this is an example to define the phrase source of income.
The Netherlands tax system differs as per the type of income. Income from employment is typically subject to a wage withholding tax prior to being subject to Dutch income tax. The income from a substantial interest in a corporate body is subject to Dutch dividend withholding tax prior to being subject to Dutch personal income tax upon the distribution of the dividend. Because a Dutch corporate body is also subject to Dutch corporate income tax, this method of taxation is also referred to as the classical Dutch tax system.
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