There are various Dutch tax rules that are applicable and are levied by the Dutch government for almost every individual and business within the territories of the country. Almost every kind of income is taxed, and the guardians of the Holland tax rules keep a close watch on almost all major incomes and expenses with exceeding efficiency. An important aspect of this has been a frequent change of the tax rules in Holland. There are some very prominent popular terms that keep circulating, such as the thirty per cent rule, the 183 day rule, and various others such. A very brief overview and summarized explanation of the kinds of Dutch tax rules in the Netherlands are as follows:
Dutch VAT Independent businessmen, including natural persons, corporate bodies, partnerships and associations come under the purview of Dutch VAT. Dutch VAT is applicable for most businesses operating in the Netherlands. Rates are differentiated between essentials and luxuries, and the rates vary accordingly, as per the updated tax rules in Holland
Dutch Income Tax All Dutch residents are liable to pay their income tax based on their worldwide income, and in accordance to the Dutch Income Tax rates applicable to them. The three primary categories of taxable income in Holland are: taxable income from work or home, taxable income from substantial interest and taxable income from savings and investment, all of these are taxed as per the prevalent dutch tax rules at the time.
Inheritance and Gift Tax Dutch Inheritance taxes, an important component of the Holland tax rules, is generally applicable to the beneficiaries of an inheritance in Holland and are generally paid by the beneficiary. The rates applicable as per Dutch Tax Rules are dependent on the relationship between the heir and the testator, categorized as spouse/partner, siblings/parent or other ascendants and other recipients.
Wage Withholding Tax Dutch Tax rules pertaining to the Wage withholding tax laws state that every supplier of staff is the withholding agent of the wage tax, as well as national insurance and employee insurance contributions owed in the Netherlands. This is also applicable, as per the latest tax rules in Holland, to all foreign employers and foreign employment agencies that make staff available in the Dutch labour market. The withholding obligation in the Netherlands arises regardless of the way in which an employee is supplied.
Corporate Tax All registered Dutch Companies are subject to corporate tax , in accordance with the tax rules in Holland, which is usually around the 25% figure, on its worldwide profits. Certain items of income, however, are exempt from tax rules in Holland and certain costs are non-deductible, depending upon the prevalent legislation at the time. The current Dutch corporate income tax rate can be found here.
Property Tax Real estate taxes in the Netherlands are based strictly, as per the tax rules in Holland, on the market value of the property and are paid by both the landlord and the tenant, if different. Each municipality in Holland, complies to the tax rules in Holland prevalent at the time and determines its own real estate tax tariff, and these are revised every four years. The real estate tax tariffs are usually between 0.1 and 0.3 percent of the property value, as per the Holland Tax Rules
The information provided above is from the Dutch Tax and Custom Administration, the primary government Authority governing Holland Tax rules
Often, for a visitor or ordinary citizen, several common questions pertaining to Dutch Tax rules, like what are the changes in tax rates, how to get tax credits and relief, tax returns and their deadlines, deductions and how to go about paying the tax can lead to a lot of wastage of time searching for the right information, and inconvenience. It is advisable, under those circumstances, to seek out a reliable and reputed Dutch Tax Accountant who clearly understands the tax rules in Holland with the necessary licenses and credentials, for assistance and guidance.
A very interesting shift in trend in Holland Tax Laws is that tax rates have actually been reduced in the last few years, substituted by a general sweeping removal of some major tax deduction policies, too. However, there are certain tax benefits that still exist and make for very attractive tax structures that make the Netherlands Tax Laws stand out from among many others in Europe.