| te income tax and income tax are different by the | | | | basically on all income gained, even on the |
| character of those paying this tax. While the former | | | | percentages on retirement stipends. |
| tax is the legal responsibility of corporations (as the | | | | To what concerns the distribution of Dutch taxes rates |
| name itself indicates), the latter concerns natural | | | | on the first box, they are of 34.15% for the first |
| persons (individuals). Subsequently, income taxes in the | | | | 17,046, out of which the greatest percentage |
| Netherlands are Dutch taxes deducted from the | | | | (31.70%) is held by social security contributions; then |
| income of the individuals. | | | | they increase at 41.45% in the case of the following |
| Who is liable to Dutch taxes on income? Basically, both | | | | 13,585, out of which, once again, social security |
| residents in the Netherlands and non-residents who | | | | holds the same percentage; then at 42% for the |
| obtain an income from the Netherlands are | | | | following 21,597, where social security contributions |
| answerable to Dutch taxes on the earned income. | | | | are no longer registered, tax is the single issue here; |
| Should non-residents opt for being treated as | | | | and finally, for whatever exceeds the last threshold, |
| residents, then the same rules apply to them as in the | | | | the belasting percentage reaches the point of 52%. |
| case of residents. What does that mean? While | | | | The second class of income taxable in the |
| non-residents liable to Dutch taxes are only taxed on | | | | Netherlands results from the so called substantial |
| income strictly related to the Netherlands (therefore on | | | | interest in a company; in the case where an individual |
| earnings obtained from the Netherlands), resident | | | | retains at least 5% of the company’s shares |
| taxpayers are taxable on their full, whole earnings, no | | | | and the company distributes to the individual |
| matter where they come from. Also, the earnings liable | | | | shareholder profit-sharing documentation which is |
| to belasting (tax) are separated into three classes and | | | | considered as the individual’s substantial interest. |
| another important remark is that social security | | | | This substantial interest is liable to Dutch taxes. The |
| contributions are also chargeable from the | | | | belasting rates for income from substantial interest are |
| individual’s income. | | | | fixed at 25%. |
| The three classes on income liable to belasting | | | | Finally, the third class (box) of income liable to Dutch |
| concern the activities from which earnings are | | | | taxes is that coming from savings and investments. |
| acquired. These classes are, as a rule, registered | | | | The taxes here concern income coming from: stipend |
| under the label of boxes. Thus, the first box | | | | indemnities for which the cost is not deductible; |
| considers the income chargeable by the | | | | consumer credits; a lease house or a second home; |
| Belastingdienst (the tax administration office in the | | | | savings, of course; investments. Stipend indemnities |
| Netherlands) resulted from work and dwellings. Here, | | | | which are deductible belong to the first class of income |
| Dutch taxes are subtracted from wages, from | | | | chargeable by Dutch taxes, and the same goes for |
| allowances, from the profits gained in various | | | | houses inhabited by owners. The tax rate for income |
| businesses, from dwellings inhabited by owners, from | | | | obtained from savings and investments is fixed at |
| the income obtained from freelance activities, from | | | | 30%. |
| press and book distribution and copyright, therefore | | | | |