If you have an employment contract in the Netherlands, you will be obliged to pay income tax. You are not required to file a tax return for this form of taxation: your employer will withhold the relevant amount from your salary and transfer it to the tax authorities. If you have a normal employment contract, this deduction will be relatively close to the amount you are required to pay in taxes for the year. The amount paid out to the Tax Authorities by your employer is roughly the same as the difference between your gross and net salary. The Netherlands applies a progressive tax system, based on about four different tax brackets. This means the amount of tax deducted from your salary depends on how much you earn and your specific tax bracket (the amount can vary between 33% and 52% of your gross salary, depending on your situation).
For more information about the tax system in Netherlands, please visit the following websites:
Companies that can help you with filling in your taxes:
- Company Partner in Tax
- Stichting Belastingwinkel Rotterdam (in Dutch)
To find information about several forms of allowances in the Netherlands such as home rental benefit, care allowance, children’s allowance visit Expatax.
Most of the allowances are income dependent.