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  • Service: Tax, International Executive Services
  • Type: Regulatory update, Survey report
  • Date: 2/26/2014

Other taxes and levies 

Taxation of international executives
Social security tax
Gift, wealth, estate, and/or inheritance tax
Real estate tax
Sales/VAT tax
Other taxes


Social security tax

Are there social security/social insurance taxes in the Netherlands? If so, what are the rates for employers and employees?


Employer and employee


The Dutch social security system consists of the National Insurance, the Employee Insurance and the Medical Insurance.


Type of insurance Paid by employer Paid by employee Total
Unemployment Insurance Act 4.83% 0.00% 4.83%
Disability Act 6.48% 0.00% 6.48%
General Old Age Pensions Act 0.00% 17.90% 17.90%
General Surviving Relatives Act 0.00% 0.6% 0.6%
General Act Exceptional Medical Expenses 0.00% 12.65% 12.65%
Health Insurance Act 7.50% 0.00% 7.50%
Total 18.81% 31.15% 49.96%

The National Insurance is comprised of the following contributions:


  • General Old Age Pensions Act (AOW): 17.9 percent maximum EUR5.971
  • General Surviving Relatives Act (ANW): 0.6 percent maximum EUR200
  • General Act Exceptional Medical Expenses (AWBZ): 12.65 percent maximum EUR4,220.

The Employee Insurance is comprised of the following contributions:


  • Unemployment Insurance Act (WW)
  • Disability Act (WIA).

Depending on the employee’s profession, different rates may apply when calculating Employee Insurance contributions.


Employer


  • WW: 4.83 percent maximum EUR2,483
  • WIA: 6.48 percent maximum EUR3,331
  • Health insurance Act: 7.5 percent maximum EUR3,856

Employee


  • WW: 0 percent.

Medical insurance


Per 1 January 2006, the Health Insurance Act is applicable. The insurance premium consists of a nominal contribution (on average EUR1,329 per year, to be paid by the employee) and a means-tested contribution. The means-tested contribution is 7.5 percent of the income for contribution purposes (capped at EUR51,414, that is, EUR3,856 per year) and is an employer’s contribution.


Calculation of social security liability for the employee in sample calculation above


EUR
National insurance (levied together with income tax) 10,392

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Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in the Netherlands?


Gift and wealth taxes


Gifts made by a resident of the Netherlands are basically taxed at the same rates as net assets inherited from the estate of a resident, although the tax-free limits may differ depending on the recipient of the gift. In certain situations gifts made by former residents of the Netherlands are also taxed. Resident persons who benefit from the 30 percent ruling are subject to the tax like any other taxpayer.


There is no wealth tax in the Netherlands. However, wealth is taxed in Box 3 of the Dutch income tax. The wealth is deemed to yield 4 percent income, which is taxed at a fixed rate of 30 percent.


Inheritance tax


Inheritance tax is levied on the net assets inherited from a person who is a resident of the Netherlands (this includes persons who benefit from the 30 percent ruling) or who died as a Dutch citizen within 10 years of leaving the Netherlands. The inheritance tax imposes less of a burden on close family members compared with that imposed on distant relatives or unrelated persons.


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Real estate tax

Are there real estate taxes in the Netherlands?


Real estate tax is assessed by the municipality on the occupier of real property and is based on the value of the property. The rates vary from town to town.


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Sales/VAT tax

Are there sales and/or value-added taxes in the Netherlands?


Sales tax


There is a sales tax on the transfer of Dutch real estate (this real estate transfer tax is 6 percent for commercial real estate and 2 percent for residential property) and on certain insurances (21 percent).


Value-added tax (VAT)


The normal VAT rate is 21 percent. For certain goods and services other rates apply (6 percent or 0 percent).


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Other taxes

Are there additional taxes in the Netherlands that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.


Local taxes


There are several local taxes assessed by the municipality, for instance waste tax, sewage charges, and dog tax.



© 2014 KPMG Meijburg & Co., a Netherlands partnership and a member of the KPMG network of independent firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

 

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 Netherlands – Topics

Taxation of international executives