2021 Netherlands Tax and Key terms
Tax System In Netherlands and 3 Boxes
Box 1 :income from employment, business and housing
Box 2 :income from a substantial interest (>5%) in a corporation
Box 3 : income from savings and investments
Fiscal Partners 财政伙伴
-Transfer of all deductions to partner taxed with highest tax rate;
-Double exemptions for savings and investments
-30%-ruling: shifting savings and investments to fiscal partner with deemed non-resident tax payer status. Savings and investments fiscal partner not taxed!
-Partner with low or no income entitled to refund of general tax credit of EUR 2.837 max provided partner pays tax in The Netherlands.
-Tax credits lower tax liability of combined box 1, 2 and 3 tax liabilities
General Tax Credit
Employment Tax Credit 、Child Tax Credit
Income Tax return forms
- M-form (form used in the year of immigration or emigration);
- P-form (form used for full year residence);
- C-form (form used for non-resident tax payers).
- P and C form may be completed digitally using your government DigiD code. M-form is on paper.
- VT-form: used to request a early refund instead of awaiting filing of tax return at the end of the year. It provides you a cash flow advantage.
-Lowers taxable salary to 70% due to the fact that 30% of salary relates by fiction to exempt ET-costs.
-For individuals with specific expertise scarce on the Dutch labour market
-Expertise is automatically assumed if gross salary level is Eur 55,658.
-A lower salary level applies for employees below the age of 30 and who have obtained a Masters degree or foreign equivalent. Gross salary of Eur 42,308 (Eur 29,616 incl. 30% ruling)
-Must be recruited from abroad (exception Phd and MD`s)
-Must not be a resident living < 150 km from Dutch border when recruited in NL (Exception Phd and MD)
-30%- ruling granted for a duration of 5 years. Transitional law applies for 30% rulings granted before 1 January 2019.
-ransfer tax needs to be paid when buying Dutch property;
-Paid by the buyer and is a percentage on top of the agreed price of the Dutch property;
-2% tax rate for buyer(s) provided they use the property as primary property. Primary property is the property where you live.
-Mortgage interest costs + costs related to mortgage (notary costs, translation costs, mortgage advisor costs and property valuation costs for bank);
-0% tax (exemption) for firsttime buyer(s) provided buyer is below the age of 35, uses the property as primary propery and the price of the property is below Eur 400.000 and has not used the exemption before.
-Important: the exemption applies for buyers who currently own property as well as they have not used the exemption before! Obviously the buyer must meet the criteria.