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Generic Tax Name Personal income tax - Tax on wages
Tax name in the national language Loonbelasting
Tax name in English Tax on wages
Member State NL-Netherlands
Tax in force since 1964/01/01
If abolished, date on which the tax ceases to apply
Business version date 2011/01/01
Version date 2011/08/19
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Act on wages tax, 1964 (Stb. 1964, 514) as last amended by the Bill of 23 December 2010 (Stb. 867).

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



Geographical Scope

Domestic-source income of non-residents is Taxed
Not Taxed

Employment incomes of married couples are Taxed jointly
Taxed separately


-Individuals, resident and non-resident, who are in paid employment in the Netherlands.

-Individuals resident abroad who are in paid employment by a Dutch public body.

-Individuals resident abroad who are members of the board of management or the supervisory board of a company established in the Netherlands.

-Professional entertainers and professional sportsmen, irrespective of whether they are employed or not.

Tax object and basis of assessment
As general rule, taxable income under personal income tax includes


Income considered Domestic income
Worldwide income (subject to double-tax relief)

Benefits in kind
The following benefits in kind are usually (partially or fully) taxable




Deductions, Allowances, Credits, Exemptions
Deduction for professional expenses.
The deduction is:


Deductions from the tax base
The following items are usually (partially or fully) deductible


The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents

The basic yearly credit for an individual amounts to: 1,987.00  EUR/National currency  or  %  of tax base
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents 739.00  EUR/National currency  or  %  of tax base
There are tax credits for:


When determining wage withholding tax, the employer takes the following tax credits into account:

- the General Tax Credit (in the above table)

- the Earned Income Tax Credit (only for the working; dependent on income and age; for taxpayers younger than 58 years max EUR 1,574)

- the Tax Credit for Young Disabled (EUR 696)

- the Tax Credit for people older than 65 (in the above table; only for incomes not exceeding EUR 34,857)

- the Tax Credit for single people older than 65 (EUR 421)

- the Tax Credit for career-break savings scheme (At the time of unpaid leave under the scheme: EUR 201 for every year one has contributed to the scheme; for a description of the scheme see below)

The Tax on Wages is collected simultaneously with national social security contributions (volksverzekeringen). The above mentioned tax credits include a tax element and a social security contribution element. Taxpayers older than 65 no longer pay contributions for the State Pension (AOW). Therefore, their combined rate of tax and social security premiums is reduced by 17.9 %-point. The tax credits are reduced accordingly.

Employers may avail themselves of a reduction in tax and contributions for some specified groups of employees. In such a case employers may remit a lesser amount in wage tax and social security contributions. Lower remittances exist to stimulate professional education, research & development and shipping.

Losses can be
Carried-forward for Indefinite
Carried-back for Indefinite
Transferred to spouse or partner

The following income is exempted from income tax


Rate(s) Structure
The following personal income tax rates apply to aggregate annual income (allowances not included)
Bracket 1 From  0.00  EUR/Natcur
To  18,628.00  EUR/Natcur
Rate: 33.00 %
Bracket 2 From  18,628.00  EUR/Natcur
To  33,436.00  EUR/Natcur
Rate: 41.95 %
Bracket 3 From  33,436.00  EUR/Natcur
To  55,694.00  EUR/Natcur
Rate: 42.00 %
Bracket 4 From  55,694.00  EUR/Natcur
To   EUR/Natcur
Rate: 52.00 %

The rate structure described above applies to taxpayers under the age of 65 and consists of tax on wages and social security contributions.   

Separate rates apply for persons aged 65 or over. This separate rate concerns the fact that these taxpayers are no longer required to pay Old-Age Pension (AOW) contributions of 17.90 %. They still pay contributions under the Generals Exceptional Medical Expenses Act (AWBZ) and General Survivors' Pension Act (ANW). The rates for persons aged 65 or over:

- bracket 1: rate: 15.10 % (tax: 1.85 %; social security contributions: 13.25 %)

- bracket 2: rate: 24.05 % (tax: 10.80 %; social security contributions: 13.25 %)

- bracket 3: rate: 42.00 % (tax: 42.00 %; social security contributions: 00.00 %)

- bracket 4: rate: 52.00 % (tax: 52.00 %; social security contributions: 00.00 %)


The wage tax includes a special withholding tax rate for non-resident professional entertainers and professional sportsmen. The fixed rate is 20 % of all gross receipts, including allowances for expenses. However, with the permission of the tax inspector, estimated expenses may be deducted. The 20 % withholding tax is possibly final. Non-resident entertainers and sportsmen may opt to file in an income tax declaration or opt to let the withholding tax be final. In case they file in an income tax declaration, the progressive rates will apply and the actual costs may be deducted. Furthermore, besides an individual entertainer of sportsman, a team, orchestra, etc. may be subject to 20 % withholding tax. 

Regional taxes
Regional taxes are (rate in capital region) A lump-sum amount:
A percentage of income:
A tax surcharge:

Local/municipal taxes
Local taxes are (rate in capital city) A lump-sum amount:
A percentage of income:
A tax surcharge:

Special surcharges
There are special surcharges in the form of:
Surcharge 1 : Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:

Separate taxation
Separate taxation applies to the following items: Employment income
Income from business or self-employed activities
Income from sport and entertainment activities
Benefits in kind (company car, meal cheques, etc)
Pension income
Owner-occupied immovable property
Interests from government bonds
Interests from corporate bonds
Interests from special saving accounts
Interests from deposits
Income from renting immovable property
Income from renting movable property
Capital gains on immovable property
Capital gains on movable property
Annuities from life insurance
Prizes and awards
Income from occasional activities
Revenues from donations and gifts
Revenues from lotteries and games activities

Withholding taxes
The tax is withheld when paid to residents on: Dividends:
Final Creditable
Interests from governments bonds:
Final Creditable
Interests from corporate bonds:
Final Creditable
Interests from special saving accounts:
Final Creditable
Interests from deposits:
Final Creditable

Tax due date


Tax collector

The employer or entity that pays the wages, withholds the wage withholding tax and pays it periodically to the tax administration. 

As from January 1, 2006, employers only have to file one combined tax return to the tax administration. The combined tax and social security contributions return comprises the wage tax/social security contributions return, the employees' social insurance contributions statement and the income-related Health Care premium statement. Employers and administration firms are furthermore under obligation to file the above returns and statements electronically.

Special features

Save-as-you-earn scheme (Spaarloonregeling)

Employees will only be permitted to take part in a save-as-you-earn scheme run by one employer. The maximum tax-free amount that an employee will be allowed to save in a year is € 613.

The following conditions apply to saving by means of save-as-you-earn in a year:

-An employee must have been employed by the employer since the first of January of that year.

-The employer must have been applying the general tax credit (algemene heffingskorting) to the employee since the first of January of that year.

-The employee does not contribute to a career-break savings scheme.

The final levy payable by the employer on save-as-you-earn savings is 25%.

Career-break savings scheme (Levensloopregeling)

Employees are legally entitled to participate in a career-break savings scheme of their employer or employers. By contributing to this scheme, employees can set aside an amount to finance a period of unpaid leave. Annually a maximum of 12% of the salary may be saved under this scheme but in total no more than 210% of the salary. This annual maximum of 12% of the salary does not apply to employees having reached the age of 51 on December 31, 2005 but not yet the age of 56. However, the 210% total maximum still applies to this category of employees.

During the period of building up the career-break savings scheme, the contribution is not subject to wage tax and social security contributions and the income-related Health Care Act premium. These become payable at the time of payment of the built up savings.

Employees' social insurance (werknemersverzekeringen) contributions are withheld from the career-break savings scheme contributions.

The employer is allowed to contribute to the career-break savings scheme provided he grants the same contribution to non-participating employees. Amounts paid to non participants are subject to normal taxation.

Each year the employee may chose to contribute to either the save-as-you-earn scheme or the career-break savings scheme. Participating in both schemes simultaneously is not possible.

The 30% facility for expatriates

Expatriates employed in the Netherlands on a temporary basis may in certain situations avail themselves of the 30% facility. This facility applies to employees coming from outside the Netherlands, who have been recruited by or seconded to a Dutch employer and who satisfy certain conditions. The facility allows the employer to grant a tax-free lump-sum allowance for the extra costs of the employee's stay in the Netherlands (extraterritorial costs). This lump-sum allowance amounts to a maximum of 30% of the sum of the wages and the allowance. If the actual costs are higher, they may be reimbursed free of tax.

The school fees paid for children to attend an international school may be reimbursed free of tax in addition to the lump-sum allowance for the extraterritorial costs.

Professional costs that cannot be designated as extraterritorial costs may also be reimbursed tax-free in accordance with the normal rules.

Economic function


Environmental taxes

Tax revenue
ESA95 code d51ab + d51aa

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2009 47,591.00 EUR 7.71
2008 40,494.00 EUR 6.33
2007 40,023.00 EUR 6.53
2006 35,163.00 EUR 6.07
2005 30,857.00 EUR 5.66
2004 26,493.00 EUR 5.06
2003 28,149.00 EUR 5.56
2002 28,306.00 EUR 5.72
2001 23,347.00 EUR 4.90
2000 22,153.00 EUR 4.94


As the wage tax is an advanced payment on the personal income tax, the tax revenue, the tax revenue in percentage of BNP and the tax revenue in percentage of total tax as shown in the table below includes the amounts for Dutch Personal Income Tax.