2. Taxation: Personal income tax The tax rate for income from work and home is a rising scale with four ‘brackets’. As a result, relatively more tax is paid as one's income increases . A standard 4% rate of return on the mean assets over the course of one year is calculated. The result of this calculation is defined as ‘income from assets’ . One is charged 30% on this calculated income. The assets will be checked twice every year, on 1 January and 31 December. 52% tax 52% tax € 50,652 or more 42% tax 42% tax € 29,543 to € 50,652 22.450% tax & contributions 40.35% tax & contributions € 16,265 to € 29,543 15.50% tax & contributions 33.40% tax & contributions Up to € 16,265 65 years and older Up to 65 years old Income tax and national insurance contributions Bracket taxable income
3. Taxation: 30% Ruling for expatriates The Netherlands has a special tax regime for expatriates , the so-called 30% ruling , which provides a substantial income-tax exemption (up to 30%) for a period of up to 120 months. This is viewed as a reimbursement of the extra costs involved in living abroad. According to 30% rule, the employer may grant the employee a tax-free allowance up to a maximum of 30% of his remuneration. The remuneration includes incidental and flexible forms of income such as bonus payments and stock options. Termination and pension payments are excluded. The exemption is available for a period of 10 years (120 months). The law stipulates that after a period of five years the tax authorities can request the employer to demonstrate that the employee still meets the conditions. The period will then, at the joint request of employer and employee, be continued up to the full 10 years.
4. New York Boston Atlanta Austin Chicago San Mateo The Hague Stuttgart London NFIA HQ The Hague Tokyo Osaka Taipei Hong Kong Seoul Netherlands Foreign Investment Agency in Chicago Mr. Martijn Bouwman Assistant Area Director 303 East Wacker Drive, Suite 2610 Chicago, IL 60601 Tel: (312)616-8400 Fax: (312)616-8408 E-mail: martijn@nfia.com Internet: www.nfia.com NFIA World Wide contact data Chicago office Though all due care was taken in compiling these texts, certain information may nevertheless be inaccurate or outdated. The Netherlands Foreign Investment Agency is not liable for the consequences of any activities undertaken on the basis of these texts.
