Dutch Tax system
If you live in the Netherlands you are required to pay taxes when you earn money.
The Dutch tax office (called Belastingdienst) collects through various different ways taxes for example Payroll tax and VAT. Read more in the section Dutch Tax system.
We explore in this section
The Dutch fiscal year
The fiscal year in the Netherlands is equal to the calendar year, running from 1 January to 31 December. The time you should file the annual income tax return to the Dutch tax office is from 1 March until 30 April. When you receive a request from the Dutch tax office you are required to file an income tax return.
The box system
You are subjected to pay tax on your income when you live in the Netherlands. Some of your expenditures may be tax-deductible.
For tax purposes, income is divided into three categories (known as boxes).
- Box 1 - Income from work and home ownership
- Box 2 - Financial interests in a company
- Box 3 - Savings and investments.
Read more in our section Income Tax.
Yearly income tax return
When you are employed in the Netherlands, your income tax is deducted from your salary every month. When you receive a request from the Dutch tax office you are required to file an income tax return you get a change to balance the pre-paid tax with your financial assets. For example, investments, your mortgage, healthcare and study costs. This may give you some money back.
