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If you work or receive benefits in the Netherlands, you pay taxes. Once a year you must file your own income tax return. Read here how this works.
You have to pay taxes on your income. If you work for an employer, tax is automatically paid on your wages. This also happens automatically if you have benefits. If you are an entrepreneur, you have to calculate and pay tax yourself.
Filing tax returns
Once per year the Dutch tax authorities you ask you to fill in your data about your income digitally. This is called the 'belastingaangifte'. You have to do this every year between 1 March and 1 April. The tax authorities calculate whether you paid enough tax on your income last year. Sometimes you have to pay extra or you get a refund.
The Dutch tax authorities can help you fill in your 'belastingaangifte'. You can make an appointment for this via the Tax Information Line: (0800) 05 43. You can call between 08:00 and 20:00 from Monday to Thursday, and on Fridays between 08:00 and 17:00.
Getting money back
If you have overpaid income tax, you can get money back from the Dutch tax authorities. This is called a 'belastingteruggave'.
If you live in an asylum seekers' centre (AZC) for part of the year, you can use the 'M-formulier' to get a 'belastingteruggave'. The 'M-form' is a form you fill in in the year of emigration or immigration.
Normally, you have to submit the 'M-formulier' to the Dutch tax authorities by 1 July of the following year. Please note: it may be that the municipality sees that refund as income. The municipality will deduct this from your benefit. Check with the municipality before filling in the form.
Taxes on your salary
When you work for an employer, you automatically pay part of your wages to the government. This is called wage tax. How much tax you have to pay depends on the amount of your income. The higher your income, the more tax you have to pay.
This much tax you have to pay
If you earn between €0 and €73,031 gross per year, you must pay 36.93 percent tax on your salary.
If you earn €73,031 and above, it is 49.50 percent.
Wage tax deduction
If you are employed in the Netherlands, you are entitled to a discount on your wage tax. There is a general tax discount and an employment tax discount. These discounts together are called the wage tax discount. You can apply for the wage tax credit with your employer, or through the Dutch tax authorities. Your employer then pays less tax, giving you more pay.
Your employment tax discount is calculated based on your income. The maximum employment tax discount is € 5,052 per year. At an income from € 37,697 and above, the employment tax credit becomes progressively lower. How much wage tax discount is applied to you therefore depends on your salary.
Please note: If you work for multiple employers at the same time, you can claim a wage tax discount from one employer. If you want to use the wage tax discount, report this to your employer.