polewinfini.blogg.se - Evaluate the flat tax in terms of the three criteria for effective taxes.

Additional income, savings or investments.The tax return is necessary to balance out your "prepaid" tax with other financial aspects such as: The Dutch tax office will inform you if you are required to do so. Annual income tax return ( aangifte inkomstenbelasting)Įven though wage tax has already been withheld from your gross salary as an advance levy or payment on your income tax, you often still need to complete an annual income tax return.

A list of other kinds of taxes can be found at the end of this page. They then pay this amount to the Belastingdienst. There are three different levels of BTW: 0%, 9% and 21% (the most common rate).īusinesses (including freelancers) must calculate the BTW they have earned and spent via the quarterly sales tax declaration ( BTW aangifte). All businesses, excluding some foundations and associations, must add BTW to the price of their goods and services. The Belastingdienst also collects taxes via the sales or revenue tax ( omzetbelasting), known in the Netherlands as BTW ( belasting over de toegevoegde waarde). There is a large difference between your gross salary ( bruto salaris) which includes tax, and your net salary ( netto salaris), after tax is deducted. It's important for expats to keep the deduction in mind when discussing salary and employment contract terms for a new job. Your payroll tax is deducted from your salary every month. The payroll tax levy is made up of tax on your salary (wage tax or loonbelasting) and national insurance contributions for pensions, unemployment allowance and other Dutch benefits and allowances. Payroll tax is tax and other contributions that are withheld from an employee’s salary by the employer, which saves the employee from having to pay them later as income tax. If you are self-employed in the Netherlands then you must calculate and pay your income tax via the annual tax return. If you are employed by a company then your income tax will be withheld from your salary by your employer, this is known as wage tax (which is contained within payroll tax).