Tax rates
Income tax
The Dutch income tax system has three categories of taxable income with their own rates;
- box 1 taxable income from work and dwellings;
- box 2 taxable income from substantial interest;
- box 3 taxable income from savings and investments.
The income tax payable is the aggregate amount of the tax on the taxable income in the three boxes.
The tax on taxable income for income from work and dwellings (box 1) is:
- The first bracket: 33.60% on the first € 17.579. This rate comprises of 2.45% tax and 31.15% security contributions;
- the second bracket: 41,85% on the next € 14,010. This rate comprises of 10,70% tax and 31.15% social security contributions;
- the third bracket: 42% tax on the next € 22,271;
- the fourth bracket: 52% tax on the excess.
This will give the following table:
| Taxable income above |
but not more than |
rate including social security contributions |
bracket maximum |
| € -- |
€ 18.218,- |
33.45% |
€ 6.093,-
|
| € 18.218,- |
€ 32.738- |
41.95% |
€ 12.184,-
|
| € 32.738,- |
€ 54.367,- |
42% |
€ 21.268,-
|
| € 54.367,- |
- - |
52% |
- |
Taxable income from substantial interest (box 2) is taxed at a flat rate of 25%.
Taxable income from savings and investments (box 3) is taxed at a flat rate of 30%. There is a tax-free amount of € 20,315.
Corporate income tax
The Dutch corporate income tax rates (2008) are as follows:
| Profits till € 40,000: |
20% |
| Next € 160,000 profit: |
23% |
| Above € 200,000 profit: |
25,5% |
Inheritance and gift tax
Inheritance and gift tax are levied on the value of everything that is received by someone who lived in the Netherlands at the time of the transfer or the received is located in the Netherlands, like real estate.
After applying the tax exemptions the tax rates are as follows:
| Taxable gift/inheritance |
Received by someone who is: |
| |
I spouse, children, descendants in 2nd or further degree, or cohabitators* |
II brothers, sisters, blood relatives in the direct line up |
III other receiver |
| |
|
Rate (%) |
|
Rate (%) |
|
Rate (%) |
| 0–22 382 |
0 |
5 |
0 |
26 |
0 |
41 |
| 22 382-44 758 |
1 119 |
8 |
5 819 |
30 |
9 176 |
45 |
| 44 758-89 504 |
2 909 |
12 |
12 531 |
35 |
19 245 |
50 |
| 89 504-178 999 |
8 278 |
15 |
28 192 |
39 |
41 618 |
54 |
| 178 999-357 987 |
21 702 |
19 |
63 095 |
44 |
89 945 |
59 |
| 357 987-894 948 |
55 709 |
23 |
141 849 |
48 |
195 547 |
63 |
| 894 948 and the above |
179 210 |
27 |
399 590 |
53 |
533 832 |
68 |
* Cohabitators are only eligible to the tax rates of group I if they meet additional requirements.
VAT:
The Dutch VAT rates are:
- 0% for international activities, like transferring goods outside of the European Union.
- 6% for certain activities, like food and drink, medicines, agriculture and cultural events.
- 19% for all other VAT taxable activities.
Please note there are also activities that are exempt of VAT.
