Last updated: Feb, 2025 by Ernst (disclaimer)
Below is a schematic overview and calculation of the Dutch Personal Income Tax
| Dutch Personal Income Tax | ||
|---|---|---|
| Box 1 (Income from work and owner-occupied home) | ||
| Sub-section | Taxable item | +/- |
| Income from self-proprietorship (eenmanszaak) | Taxable income from self-proprietorship (eenmanszaak) | +/+ |
| Additional charge for private usage of company car | +/+ | |
| Entrepreneur’s deductions | ||
| • Private business ownership allowance (zelfstandigenaftrek) | -/- | |
| • R&D deduction (S&O-aftrek) | -/- | |
| • Working partner's abatement (meewerkaftrek) | -/- | |
| • Business discontinuation relief (stakingsaftrek) | -/- | |
| • Profit exemption for small and medium-sized enterprises (SME) (mkb-winstvrijstelling) | -/- | |
| Is taxable profit from self-proprietorship | = | |
| Tax already paid via provisional assessment | -/- | |
| Income from employment | Gross wage | +/+ |
| Additional charge for private usage of company car | +/+ | |
| Payroll tax already deducted | -/- | |
| Income from other activities | Taxable income from other activities | +/+ |
| Exemption on making capital available | -/- | |
| Income from periodical payments | Taxable periodical payments and benefits in kind | |
| Income from owner-occupied home | Taxable notional income from owner-occupied home | +/+ |
| Deductible costs on account from owner-occupied home | -/- | |
| Deduction on account of no or little owner-occupied home debt | -/- | |
| Deductible expenses | Expenses for income provisions | -/- |
| Expenses for maintenance provisions (alimony) | -/- | |
| Expenses for deductible healthcare costs | -/- | |
| Expenses for deductible gifts | -/- | |
| Loss relief | Loss relief in box 1 | -/- |
| Is taxable income in box 1 | = | |
| Personal income tax + social security contributions | -/- | |
| Is taxation over box 1 | = | |
| Box 2 (Income from substantial interest) | ||
| Regular income (i.e. dividend income) | +/+ | |
| Deductible expenses | -/- | |
| Divided tax already withheld | -/- | |
| Tax already paid via provisional assessment | -/- | |
| Capital gain benefits | +/+ | |
| Remainder of deductible expenses | -/- | |
| Loss relief box 2 | -/- | |
| Is taxable income box 2 | = | |
| Personal income tax | -/- | |
| Is taxation box 2 | = | |
| box 3 (Savings and investments) | ||
| Notional return on bank deposits | +/+ | |
| Notional return on other assets | +/+ | |
| Exemption of usufruct | -/- | |
| Exemption of forest and natural areas | -/- | |
| Exemption of works of art and science | -/- | |
| Exemption of green investments | -/- | |
| Exemption of net annuities and net pensions | -/- | |
| Dividend tax already withheld | -/- | |
| Exempt capital | -/- | |
| Notional deduction on debt | -/- | |
| Exempt debt | +/+ | |
| Remainder of deductible expenses | -/- | |
| Is taxable income box 3 | = | |
| Personal income tax | -/- | |
| Is taxation box 3 | = | |
| Personal income tax | ||
| Is sum of tax payable over box 1, box 2 and box 3 including social security contributions | = | |
| General tax credit | -/- | |
| Tax credit on income from labour | -/- | |
| (Single) elderly tax credit | -/- | |
| Is total income tax and social security contributions payable | = |