Tax rates in the Netherlands 2008


The combined tax rates in the first bracket have been reduced with 0.05% to 33.60% while the rates in the second bracket have been raised with 0.45% to 41.85%. The rate for the third bracket stays 42% and the rate for the fourth bracket stays 52%. The brackets have also been extended.


Combined rates in Box 1 for persons younger than 65
Taxable income 
Tax per bracket

Premium National Insurance

Total rate Total per bracket Cumulative
Of more than But less than          
             
€ 0 € 17,579 2.45 % 31.15 % 33.60 % € 5,906 € 5,906
€ 17,579 € 31,589 10.70 % 31.15 % 41.85 % € 5,863 € 11,769
€ 31,589 € 53,860 42 %   42 % € 9,353 € 21,122
€ 53,860   52 %   52 %    

 

Rate Box 2 (income from a substantial interest in a limited company)

 

For the year 2008 the tax rate for income from a substantial interest is changed back to 25% again. This rate was temporary reduced to 22% for the year 2007.

 

Rate Box 3 (income from savings and investments)

 

The tax rate for income from savings and investments stays 30%. Expats with the 30% ruling can opt to be exempted from taxation on savings and most of the investments.

 

Tax credits

 

After the tax has been calculated based on the above percentages you can reduce the calculated amount with the applicable tax credits.

 

Personal tax credit € 2,074
Labour tax credit (max) € 1,443

 

If you have children additional tax credits can apply. There are also other specific tax credits depending on your situation but the above are the common tax credits. The labour tax credit depends on the height of the salary and can be higher than € 1,443 if you are 57 years or older.


SHARE THIS PAGE