Month: January 2012

Dutch income tax rates 2012 (and 2011)

Rates box 1 (income from work and home ownership)

Tax year 2012

Taxable income of
more than:       but less than:              tax rate:    premium:   total rate:       total tax/premium:
(younger than 65 years)
EURO           – | EURO 18,945           |   1.95% | 31.15%       | 33.10%        |  EURO 6,270
EURO 18,945  | EURO 33,863           |10.80%  | 31.15%       | 41.95%        |  EURO 12,528
EURO 33,863  | EURO 56,491           |42.00%  |        0%       | 42.00%        |  EURO 22,031
EURO 56,491  |      and further           |52.00%  |        0%       | 52.00%        |  EURO 22,031 + 52% on excess

Taxable income of
more than:       but less than:              tax rate:    premium:   total rate:       total tax/premium:
(65 years and older)
EURO           – | EURO 18,945           |   1.95% | 13.25%       | 15.20%        |  EURO 2,879
EURO 18,945  | EURO 34,055           |10.80%  | 13.25%       | 24.05%        |  EURO 6,512
EURO 34,055  | EURO 56,491           |42.00%  |        0%       | 42.00%        |  EURO 15,935
EURO 56,491  |      and further           |52.00%  |        0%       | 52.00%        |  EURO 15,935 + 52% on excess

Continue reading “Dutch income tax rates 2012 (and 2011)”

Various expat tax matters Q and A

This post contains some of the up to date (December 2012) expat Q and A’s as discussed by us on Expatica, the discussed issues are categorized:

30%-ruling
Q: Next year, it shall be my 5th year here in NL. I have been granted a 30% tax ruling since I came here last 2008. With the new rules, my eligibility shall be checked for next year. By the end of this year (2012), my salary will not meet €35,000 taxable income requirement. Will this affect my eligibility for next year to be able to keep my 30% tax rule? Will I still be able to keep my 30% tax rule for next year?

A: Indeed after the first five years you will have to meet the 2012 rules, amongst which is the salary criterion. There are only very limited exceptions not to meet this criterion, e.g. in case of temporary parental leave. However there may be an option for you to swap part of the current tax free reimbursement, under the ruling, for gross taxable salary. This is because the 30% ruling may also be based on a lowered tax free %, 30% is the maximum. This way your benefit of the ruling will decrease, but could still give a benefit.

Q: How is the yearly salary determined? My gross monthly salary based on contract is 4444 euro, thus more than 50k euro/year.However, I am now working only 4 days a week (have children), therefore I receive only 80% of 4444 euro gross, which makes it just slightly less then 50k euro yearly. Will I still qualify for the 30%ruling? Please can you elaborate on which salary is considered in case people are working part-time? Continue reading “Various expat tax matters Q and A”