Taxation in the Netherlands

The Netherlands has a rich history dealing with taxation, predating the Romanic period.

Some of the most important taxes are that of the Income Tax (Wet op de inkomstenbelasting 2001), the Wage 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

Main article: Income tax in the Netherlands

The Netherlands has a progressive tax rate. For a while, the highest income bracket in the Netherlands was 72%, but now this is 52%. The brackets are 1.8%, 9.35%, 42% and 52%. The first two brackets also contain the Social Security payments (premiums, AOW, ANW and AWBZ), making it effectively 32.6% higher - or 34.4%, 41.95%, 42% and 52%.

Value Added Tax

Generally speaking, there are two categories. There are foods and essentials, and non-foods and luxuaries. These two categories have rates of 6% and 19% respectively.

Corporate Tax

20% for the first € 25,000, 23.5% for the second € 35,000 and above that a corporate tax rate of 25.5%