Dutch Tax Return

Do you live and work in the Netherlands? Then you must pay tax on your income. We call this ‘income tax’.

The Tax Authorities have established three levels (boxes) to calculate the amount of payable income tax based on your income. Every box has its own tax bracket.

Need help with your taxes?

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Box 1 – Taxable income from living and working

This is where your incomes from living and working fall into. All incomes are added together minus any possible deductions. The following income sources fall into Box 1:

  • Wages from your employment;
  • Profit from your company;
  • Income from other work activities such as freelance work;
  • Social security benefits and pensions;
  • Annuities income;
  • Transitional compensation;
  • Alimony received;
  • Homeownership.

There are several deductions that you can subtract from your income. In Box 1 those are:

  • Mortgage interest on your home;
  • Medical costs;
  • Gifts;
  • Study costs;
  • Paid partner alimony;
  • Paid annuity premiums;
  • Travel costs.

Taxable income

All incomes minus the deductions lead to the taxable income. This amount is what is used to calculate the amount payable in tax.

Throughout the year you already make predetermined payments for taxes through wage tax withholding on your income from your employment or benefit payment.

In this box a progressive tax percentage is applicable; the more you earn, the more wage tax you pay.

Box 2 – Substantial share

Your income from substantial shares fall into this box. This is applicable if you possess at least 5% of the share capital of a corporation. All the income and benefits from this box are taxed at a set rate.

Box 3 – Saving and investing

This is where all the incomes from saving, investing and perhaps a second house fall.

TOSS and your income tax

Before May 1st of the new year you must submit your income tax declaration to the Tax Authorities. Usually, your income data is already entered into the Tax Authorities’ online tool.

Have you experienced an unusual event during the year such as starting a company, receiving an inheritance, or buying a house? Or do you lack the time or knowledge to complete your tax declaration?

TOSS can help you to correctly submit your income tax declaration. We offer support, advice or take care of the tax declaration in its entirety for you.

Most of our clients choose to allow us to submit the income tax declaration on their behalf. You share your income data via the online portal, and we take care of the rest for you for a set fee.

About TOSS

As The One Stop Shop, TOSS offers a wide range of services for expats and / or their employers in the field of living and working in the Netherlands with the aim of making every related process as smooth and effective as possible.

We have over 20 years of experience and we have carefully built up an extensive global network of specialists to serve you. All our team members are specialized and educated with all needed payroll certificates and our services meet the (inter)national standards.

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