Income Tax

If you live in the Netherlands or receive income from the Netherlands, you are required to pay income tax. You pay tax in the Netherlands on your income, on your financial interests in a company and on your savings and investments. The Tax and Customs Administration collects income tax. The government may adjust the tax rates every year. It uses the tax revenues to pay for things like roads, benefits and the judiciary.

Filing Your Income Tax Return

In the Netherlands, income tax returns must be filed digital before April 1st of every year. People who have migrated to the Netherlands during the previous year will receive a so-called M-form and must file it before July 1st. To file a tax return, you will need a digital signature or DigiD, or the services of a tax consultant.

Particularly in the year of arrival and the year of departure, filing an income tax return may result in a substantial rebate. Tax returns can be completed retrospectively for a period of five years.

30% Ruling

To attract employees from abroad with specific skills, the Netherlands introduced a special tax incentive called 30% ruling facility. The reason this facility was introduced is that if an employee comes to the Netherlands to work, they may face additional expenses (“extraterritorial expenses”). The 30% ruling allows employers to compensate their ‘extraterritorial’ employees for expenses they incur in connection with the fact that they are working outside their home country. This is done by means of a fixed cost allowance of 30% of the wage.

Value Added Tax

Are you entrepreneur and do you supply goods and services in the Netherlands? Then you are covered by the VAT regulations that apply here.

Dutch VAT rates are based on the European Union’s VAT Directive. All EU member states must adhere to the Directive, and the standard VAT rate must be 15% or higher.

As entrepreneur who is involved with VAT, you are required to know which tax office deals with your business and how you can register with the Tax and Customs Administration

Rates: 21%, 9% or 0%

In the Netherlands, the standard VAT rate is 21%. There are two additional special rates: the 9% rate and the 0% rate (zero rate).

VAT exemptions

Some goods and services are exempt from VAT. This applies to various professions and to certain business activities, such as education, health care, childcare, insurance and banking services. In these cases, the trader may not charge VAT.

For the Income Tax or VAT Filling you can contact one of the Tax Consultant

You can reach our Partner Tax Consultant

Administratiekantoor RA-SA

R.D. Sardjan (Randy)