Dutch tax changes from 2015
From 1 January 2015, the Dutch Government will introduce a number of tax and savings related changes. The key changes are summarised below.
- Changes to the work-related expenses will become mandatory for all employers.
- New tax bands and rates introduced:
|Tax bands||Proposed rates 2015|
|Up to EUR 19,822||36.5% (8.35% tax + 28.15% national insurance)|
|EUR 19,822 – EUR 33,857||42% (13.85% tax + 28.15% national insurance)|
|EUR 33,857 – EUR 57,585||42% (tax only)|
|Over EUR 57.585||52% (tax only)|
- Working people will be entitled to a higher labour tax credits.
- In 2016, immigrating and emigrating tax payers will be entitled to a pro-rated tax credit only. Transitional rules will apply in 2015.
- Members of ‘life course plans’ will be allowed to cash in their savings and receive the first 20% tax-free. The remaining 80% will be taxable.
- New pension and annuity products will be introduced, which will be net of tax.
- No extension of the 16% crisis tax
- Simplification of the rules for mortgage interest deduction on a principal home (in situations where an individual has two houses under a mortgage loan at the same time and is left with a debt after having sold a house).
The Budget also introduced changes for non-resident tax payers, which will allow individuals – under certain conditions – to be treated as ‘qualifying tax non-residents´ and thus eligible for certain tax-deductible benefits that resident tax payers are entitled to, such as mortgage interest payments for the principal residence in their home country. Further information will be provided when details for obtaining ‘qualifying tax non-resident’ status have been published.
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