The rate structure described above applies to taxpayers under the age of 65.
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: from 0.00 EUR to 19,645: rate: 19.10 % (tax: 5.85 %: social security contribution: 13.25 %)
bracket 2: from 19,645 EUR to 33,363 EUR: rate: 24.10 % (tax: 10.85 %: social security contribution: 13.25 %)
bracket 3: from 33,563 EUR to 55,991 EUR: rate: 42.00 % (tax: 42.00 %: social security contribution: 00.00%)
bracket 4: from 55,991 EUR: rate: 52 % (tax: 52.00 %: social security contribution: 00.00%)
For employees earning more than EUR 150,000, the Wage Tax, payable by their employer is increased by 16% of the amount exceeding EUR 150,000
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.
There is a fixed rate of 25.00 %.
There is a fixed rate of 30.00 % of an imputed rate of return of 4 % of the fair market value of the assets minus debts at the beginning of the calendar year.
The above amounts and rates are valid for 2013. Indexation takes place each year.