Wage tax

Tax on salary

Tax on wages


Tax payable by


  • Persons resident in the Netherlands receiving a wage or salary from an employer established in the Netherlands for work they are doing or have done.
  • Persons resident abroad receiving a wage or salary from an employer established in the Netherlands for work they are doing or have done in the Netherlands.
  • Persons resident abroad who are members of the board of management or the supervisory board of a company established in the Netherlands for work they are doing or have done.
  • Persons resident abroad receiving a wage or salary from a Dutch public corporation for work they are doing or have done.
  • Non-resident artists and professional sportsmen who in accordance with an agreement of short duration or in pursuance of any short term cause or reason perform in the Netherlands, except where the Netherlands has not been granted the right to collect taxes under an agreement to prevent double taxation.

Rate


The rates are progressive. Some costs can be deducted and tax free allowances can be provided.

 

Tax payable on

 

The tax on wages or salaries tax is an advance levy on the personal income tax. The salaries tax and the social security contributions are levied jointly on earned income or benefits.

 

Collection

 

The employer or body paying the benefit deducts the tax and contributions directly from the salary or benefit, and pays these to the tax department. Many persons pay only salaries tax, and are not subject to income tax. For persons with a high income or many tax-deductible items, the salaries tax serves as an advance levy, and they are subsequently issued with an income tax return and an assessment.

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