Taxation in the Netherlands
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Some of the most important taxes are that of the income tax (Wet op de inkomstenbelasting 2001), the wage withholding tax (Wet op de loonbelasting 1964), the value added tax (Wet op de omzetbelasting 1968) and the corporate tax (Wet op de vennootschapsbelasting 1969).
Income tax
The Netherlands has a partly progressive tax rate. In the past, the highest income bracket in the Netherlands was 72%, but in 1990 it was changed to 60%, and in 2001 it became 52%. The brackets in 2014 are 2.35%, 10.85%, 42%, and 52%.[1] The first two brackets also contain the Social Security payments (contributions to schemes like AOW, ANW and AWBZ), resulting in effective tax plus social insurance rates of 33.5%, 42% and 52% for taxpayers below retirement age.
Value added tax
For the value added tax there are three categories: foods and essentials, non-foods and luxuries, and special goods. These three categories have rates of 6%, 21%, and 0%, respectively. The non-foods and luxuries percentage was increased from 19% to 21% on October 1, 2012. The special goods cover:
- Goods that are exported
- Goods that haven't been introduced yet
- Catch of Fish
- Excised goods[2]
- International transport of people[3]
Corporate tax
20.0% for the first € 275,000 and above that a corporate tax rate of 25.5% (determined in December 2008 for the tax year 2008 and may be the same rates in 2009 and 2010) 20.0% for the first € 200,000
Property tax
Property tax or land value tax is claimed annually by municipalities. A fraction of the value of real estate (about a per mille) is defined as onroerendezaakbelasting (OZB). The money collected from the real-estate owners in its area can be used by the municipality to maintain the infrastructure (roads etc.). The real-estate values are estimated independently and updated annually. Taxation varies dramatically over different regions and municipalities. In addition to the property tax itself, there is a complicated additional taxation system for different infrastructural support systems: water-level management, water cleaning, waste management etc.
Gambling tax
No taxes are applied when the sum won is €454 or less, or when the entry fee is higher than the prize won.
If the prize is higher than €454, a tax rate of 29% is applicable; however, if the host pays the taxes the sum is multiplied by 100 and then divided by 71, and 29% of that amount is taken as tax.
Inheritance tax
The inheritance tax (successierecht) charges beneficiaries of an inheritance.
Wealth tax
Possessions like savings, shares, houses that are not the primary living etc. over € 21,139. are assumed to have an annual 4% yield which is taxed at 30%, regardless of the actual annual yield achieved. Consumer goods like cars and furniture, that are not held as an investment, are excluded. An Aston Martin DB5 can, for example, in some cases be taxed, as an ordinary family car will not be.
Gift tax
The gift tax (schenkingsrecht) charges the beneficiary of a gift.
See also
Notes and references
- ^ 2014 Tax Brackets (dutch) Archived April 19, 2014, at the Wayback Machine
- ^ http://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/tarieven_en_vrijstellingen/goederen_0_btw/goederen_met_0_btw
- ^ http://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/btw/tarieven_en_vrijstellingen/diensten_met_0_btw/diensten_met_0_btw