World Library  
Flag as Inappropriate
Email this Article

Taxation in the Netherlands

Article Id: WHEBN0004236011
Reproduction Date:

Title: Taxation in the Netherlands  
Author: World Heritage Encyclopedia
Language: English
Subject: Economy of the Netherlands, Sport in the Netherlands, Taxation in Canada, Transport in the Netherlands, Outline of the Netherlands
Publisher: World Heritage Encyclopedia

Taxation in the Netherlands

Some of the most important taxes are that of the income tax (Wet op de inkomstenbelasting 2001), the wage withholding tax (Wet op de loonbelasting 1964), the value added tax (Wet op de omzetbelasting 1968) and the corporate tax (Wet op de vennootschapsbelasting 1969).

Income tax

The Netherlands has a partly progressive tax rate. In the past, the highest income bracket in the Netherlands was 72%, but in 1990 it was changed to 60%, and in 2001 it became 52%. The brackets in 2014 are 2.35%, 10.85%, 42%, and 52%.[1] The first two brackets also contain the Social Security payments (contributions to schemes like AOW, ANW and AWBZ), resulting in effective tax plus social insurance rates of 33.5%, 42%, 42%, and 52%.

Value added tax

For the value added tax there are two categories: foods and essentials, and non-foods and luxuries. These two categories have rates of 6% and 21%, respectively. The non-foods and luxuries percentage was increased from 19% to 21% on October 1, 2012.

Corporate tax

20.0% for the first € 275,000 and above that a corporate tax rate of 25.5% (determined in December 2008 for the tax year 2008 and may be the same rates in 2009 and 2010) 20.0% for the first € 200,000

Property tax

Property tax or land value tax is claimed annually by municipalities. A fraction of the value of real estate (about a per mille) is defined as onroerendezaakbelasting (OZB). The money collected from the real-estate owners in its area can be used by the municipality to maintain the infrastructure (roads etc.). The real-estate values are estimated independently and updated annually. Taxation varies dramatically over different regions and municipalities. In addition to the property tax itself, there is a complicated additional taxation system for different infrastructural support systems: water-level management, water cleaning, waste management etc.

Gambling tax

No taxes are applied when the sum won is €454 or less, or when the entry fee is higher than the prize won.

If the prize is higher than €454, a tax rate of 29% is applicable; however, if the host pays the taxes the sum is multiplied by 100 and then divided by 71, and 29% of that amount is taken as tax.

Inheritance tax

The inheritance tax (successierecht) charges beneficiaries of an inheritance.

Wealth tax

Possessions like savings, shares, houses that are not the primary living etc. over € 21,139. are assumed to have an annual 4% yield which is taxed at 30%, regardless of the actual annual yield achieved. Consumer goods like cars and furniture, that are not held as an investment, are excluded. An Aston Martin DB5 can, for example, in some cases be taxed, as an ordinary family car will not be.

Gift tax

The gift tax (schenkingsrecht) charges the beneficiary of a gift.

See also

Notes and references

  1. ^ 2014 Tax Brackets (dutch)

External links

  • Dutch Tax and Customs Administration
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.

Copyright © World Library Foundation. All rights reserved. eBooks from World Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.