Dutch tax rates 2006

Taxation

Tariffs 2006 - tax rates and premiums

Tariffs for wage taxes/national insurance contributions

 

Bracket Annual wages subject to wage tax/national insurance contributions Up to 65 years old 65 years old and above
1

Up to and including € 17,046

34.15%

16.25%

2

€ 17,047 up to € 30,631

41.45%

23.55%

3

€ 30,632 up to € 52,228

42%

42%

4

€ 52,229 and above

52%

52%

Tarriff in the third and fourth brackets comprises wage tax only.

The tariff in the first and second brackets is made up as follows:

Bracket   Up to 65 years old 65 years old and above
1 Old-age pension contribution (AOW)

17.90%

-

Surviving dependants contribution (Anw)

1.25%

1.25%

Exceptional medical expenses contribution (AWBZ)

12.55%

12.55%

Wage tax

2.45%

2.45%

Total

34.15%

16.25%

2 Old-age pension contribution (AOW)

17.90%

-

Surviving dependants contribution (Anw)

1.25%

1.25%

Exceptional medical expenses contribution (AWBZ)

12.55%

12.55%

Wage tax

9.75%

9.75%

Total

41.45%

23.55%


Tax credits for wage tax/national insurance contributions

  Amount Percentage Particulars
General tax credit

€ 1,990

   
Employed person’s tax credit  

1.795%

Where wages from current employment amount to € 8,132 or less

– born in 1949 and later, maximum of

€ 1,357

12.421%

Where wages from current employment amount to more than € 8,132

– born in 1946, 1947 or 1948, maximum of

€ 1,604

14.954%

Where wages from current employment amount to more than € 8,132

– born in 1944 or 1945, maximum of

€ 1,849

17.467%

Where wages from current employment amount to more than € 8,132

– born in 1941, 1942 or 1943, maximum of

€ 2,095

19.990%

Where wages from current employment amount to more than € 8,132

Elderly person’s tax credit

€ 374

 

Annual wages may not exceed € 31,256

Single elderly person’s tax credit

€ 562

   
Tax credit for persons handicapped from early childhood

€ 645

   

Final levy for employees under 65 years of age

Table tariff


Annual salary Wage tax/national insurance contributions
  Without wage tax and national insurance contributions deduction With wage tax and national insurance contributions deduction
€ 0

51.80%

0.00%

€ 5,828

51.80%

51.80%

€ 17,047

70.70%

70.70%

€ 30,632

72.40%

72.40%

€ 52,229

108.30%

108.30%


Single tariff

Annual salary Wage tax/national insurance contributions
  Without wage tax and national insurance contributions deduction With wage tax and national insurance contributions deduction
€ 0

34.15%

0.00%

€ 5,828

34.15%

34.15%

€ 17,047

41.45%

41.45%

€ 30,632

42.00%

42.00%

€ 52,229

52.00%

52.00%


Employees liable to pay national insurance contributions only

Table tariff Single tariff

51.80% becomes 46.40%

34.15% becomes 31.70%

70.70% becomes 46.40%

41.45% becomes 31.70%

72.40% and above becomes 0.00%

42.00% and above becomes 0.00%


Employees liable to pay taxes only

Table tariff Single tariff

51.80% becomes 2.50%

34.15% becomes 2.45%

70.70% becomes 10.80%

41.45% becomes 9.75%


Final levy table for anonymous employees

Table tariff (grossed up)

108.30%

Single tariff

52.00%

Other percentages apply for additional assessment by the Tax and Customs Administration.

Travel costs

Type of transport Standard amount for Amount
Public transport Public Transport Pass 2nd class

€ 54.00

Public Transport Pass 1st class

€ 82.00

Bicycle Bicycle provided for travelling between home & work, addition

€ 68.00

Bicycle provided for travelling between home & work, catalogue price

€ 749.00

Bicycle provided for travelling between home & work, value of interrelated items

€ 250.00

Other Exempted allowance per kilometre

€ 0.19


Telephone

Standard Amount for Amount
Telephone subscription per month

€ 19.66

per week

€ 4.50

per day

€ 0.90

Telephone (line rental and calls) per month

€ 22.69

per week

€ 5.22

per day

€ 1.04


Fiscal minimum wage

Age Fiscal minimum wage per
  month week day
15 years

€ 406.67

€ 93.85

€ 18.77

16 years

€ 467.59

€ 107.91

€ 21.59

17 years

€ 535.42

€ 123.56

€ 24.72

18 years

€ 616.75

€ 142.33

€ 28.47

19 years

€ 711.59

€ 164.22

€ 32.85

20 years

€ 833.59

€ 192.37

€ 38.48

21 years

€ 982.67

€ 226.77

€ 45.36

22 years

€ 1,152.09

€ 265.87

€ 53.18

23 years or above

€ 1,354.75

€ 312.64

€ 62.53


Employee insurance contributions

Standard Percentage employee Percentage employer
Contribution for Unemployment Insurance (WW) - General Unemployment Fund (Awf)

5.20%

3.45%

Contribution for Unemployment Insurance (WW) - Redundancy Pay Fund (Wgf)/Sector Fund

-

variable per sector

Basic contribution for Disability Insurance (WAO)/Work and Income (Capacity for Work) Insurance (WIA)

-

5.40%

Differentiated contribution for Disability Insurance (WAO)

-

variable per employer


Wage period amounts: maximum income assessable for employee insurance, state pension offset and maximum income assessable for healthcare insurance

  Day Week 4-weeks Month Quarter Year
Maximum income assessable for employee insurance

€ 168.00

€ 840.00

€ 3,360.00

€ 3,654.00

€ 10,962.00

€ 43,848.00

State pension offset for Unemployment Insurance (WW) -General Unemployment Fund (Awf)

€ 58.00

€ 290.00

€ 1,160.00

€ 1,261.50

€ 3,784.50

€ 15,138.00

Maximum income assessable for healthcare insurance premiums (Zvw)

€ 115.00

€ 575.00

€ 2,300.00

€ 2,501.25

€ 7,503.75

€ 30,015.00


Other amounts for 2006

Shareholders with a substantial interest Minimum usual wage

€ 39,000

Final levy on gifts for public holidays Tariff of 15% on a maximum of

€ 35

Final levy for wages that are difficult to identify Maximum value of benefits  
per year

€ 272

per benefit

€ 136

Authorisation for lower percentage due to exceptional payments For minimum deviation with income tax

€ 227

 

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