Dutch tax rules
The Dutch tax rules change every year. In 2022, a lot has happened fiscally-wise. One of the most discussed topics is the major modification in wealth taxation (box 3). In addition, the mortgage interest deduction is slightly lower. In 2023, you can file your tax return for 2022. On this page, we clarify the Dutch tax rules for 2022 and 2023.
Help with Dutch tax return 2022
We are happy to help you with your income tax return for 2022. You can file your income tax return from the 1st of March, 2023.
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Tax on income from work & home ownership (Box 1)
In 2023, the government in the Netherlands wants to improve the situation of workers. Therefore, some changes are implemented as of the 1st of January, 2023. First of all, the first tax bracket on income from work and home is reduced. In addition, the labor tax credit is increased for people with an income between € 37,697 and € 115,301.
Tax rate 2022 – 2023
In 2023, the tax on income from work has been reduced compared to 2022. As a result, you pay less income tax on your monthly payslip. You can see the modification in the table below.
| Tax bracket 1 | Tax bracket 2 | |
|---|---|---|
| 2022 | 37.07% (until €69.399) | 49.50% (from €69.399) |
| 2023 | 36.93% (until €73.031) | 49.50% (from €73.031) |
Wealth tax Netherlands 2022 – 2023 (Box 3)
The biggest change in the Dutch tax system of 2022 & 2023 is the modification in wealth tax. For people with assets in box 3, the way on which the wealth tax is calculated and the tax rate is changed. Box 3 is taxed based on the savings option. With this, the new calculation is based on the actual distribution of savings, investments, and debts.
In 2023, the tax-free allowance is increased to € 57,000. This was €50,650 in 2022. On the other side, the tax rate that people pay on their assets has increased to 32% in 2023 (31% in 2022).
In the table below, you can see the percentages the tax authorities will use to calculate the return. Good to know: the percentages for 2023 are not available and for 2022, the percentages are not fixed yet.
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Savings | 0.01% | 0.01% | tba |
| Investmenst/other assets | 5.69% | 5.53% | tba |
| Debts | 2.46% | 2.46% | tba |
Calculation box 3 in 2022 (without tax partner)
We take an example of €150,000 in savings, €150,000 in investments, and a study debt of €50,000.
Step 1: calculate the return per wealth part
Savings: € 150,000 x 0,01% = € 15
Investments: € 150,000 x 5,53% = € 8,295
Debts (minus threshold € 3,200): € 46,800 x 2,46% = € 1,151.28
Taxable return: € 15 + € 8,295 + € 1,151.28 = € 7,158.72
Step 2: calculate total assets
€ 150,000 + € 150,000 – € 46,800 = € 346,800
Step 3: calculate the rate of return
€ 7,158.72 / € 346,800 x 100 = 2.06%
Step 4: calculate the basis for savings and investments (assets – tax free allowance)
€ 346,800 – € 50,650 = € 296,150
Step 5: calculate income from savings and investments
€ 296,150 x 2.06% = € 6,100.69
Tax (31% in 2022) = € 1,891.21
Tax tips for the fiscal year 2023
Although you will only do your income tax return for 2023 in 2024, you an already arrange some tax matters in 2023.
1 Apply for a provisional assessment
If you already know that you have to pay an amount? Or that you will receive an amount, for example, because you bought a home or made other deductible costs. In this case, you can apply for a provisional assessment so you pay or receive the amount in monthly installments.
2 Arrange your tax partnership
In the Dutch tax system, tax partners get the opportunity to choose who declares which deduction or capital and in which proportion they do so. This can lead to fiscal advantages for tax partners. However, only living together with someone does not automatically imply a tax partnership. Do you not meet the conditions? You can still make a cohabitation agreement before the 31st of December, 2023 to be seen as tax partners.
3 Get a tax advisor
A tax advisor can help you with different fiscal issues. We can help you with your tax return, provisional tax return, or other tax-related questions. The TaxSavers is happy to help you. Leave your details in our contact form or call us at +31 (0)20 – 2170120 for an informal conversation.
Dutch tax rules 2021
Tax-free capital
The biggest change in the Dutch tax system of 2021 is a significant increase in tax-free capital. In 2021, the tax-free capital increased from €30,846 to €50,000 if you do not have a fiscal partner. If you do have a fiscal partner, the tax-free capital increased from €61,692 in 2020 to €100,000 in 2021. From now on, only your capital in excess of €50,000 (or €100,000 if you have a fiscal partner) will be taxed. This saves a significant amount of money for a lot of people.
Tax rate
In 2021, there were no significant changes to the tax brackets and tax rates. However, there is a slight decrease in the tax rate of the first tax bracket. You can see the change in the table mentioned below.
| UNTIL €68,508 | FROM €68,508 | |
|---|---|---|
| 2020 | 37.35% | 49.50% |
| 2021 | 37.10% | 49.50% |
Example
In this example, we show you the effect of the decreased tax rate. We assume a yearly gross salary of €45,000,-. We will compare the difference in income tax between 2020 and 2021.
2020: A yearly income of € 45,000 did have a tax rate of 37.35%. This shows that €16,807 income tax must be paid in 2020.
2021: A yearly income of € 45,000 has a tax rate of 37.10%. This shows that €16,695 income tax must be paid in 2021.
Due to the change in our tax system, you have to pay €112 less income tax in 2021 in this example.
Allowances
The government will work on a better benefits system in 2021. Their objective is to achieve a system that is fairer and which has a more human approach.
Goals:
- Improve the legal protection
- More human approach
- Change the definition of partnership
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