Income tax
Income tax is a difficult matter for many individuals, while there are so many opportunities for the private individual. It goes without saying that you do not file an incorrect tax declaration, apply prohibited tax constructions or keep a sloppy administration. When you delve into tax matters, or receive expert tax advice on tax regulations and laws, there are important benefits to be gained and you are protected against sanctions, fines, legal proceedings and the like.
Our reliable expert tax specialists, who all have years of experience, see every opportunity. We turn these opportunities into benefits for our customers and protect them. Often this has immediate results, so that the financial position improves. All our tax specialists have years of experience and the mr. title. All our tax specialists have at least 25 years of experience and the mr. title.
Tax declaration income tax for private individuals
As a non-entrepreneur and private individual, you must submit an income tax declaration every year. You add up all income and you can deduct deductions from this. Think, for example, of mortgage interest deduction, education costs, medical expenses and the like. If you have added up all the income and subtracted the deductions, the taxable income remains. You have to pay tax on this income.
This income is divided into three boxes:
- Box 1: Income from home and work
- Box 2: Income from significant interest (e.g. dividend).
- Box 3: Income from savings and investments
In each of these boxes, the amount of taxable income is calculated separately each calendar year. This split is necessary because each box has its own rate
Income tax declaration Box 1 (individuals)
In this box, all income obtained from work and home is taxed. This taxable income consists of several components. The code states that incomes from the following categories must be added together to arrive at income from work and housing:
- Taxable profit from a company;
- The taxable wage;
- Taxable income from other activities;
- Taxable income from own home;
- Negative personal deductions;
- Negative expenditure in the context of income provision; and
- Taxable part of benefits and other benefits in kind.
Deductions income tax declaration Box 1 (individuals)
Every taxpayer also has the right to use certain items as deductions. These amounts may then be entered to deduct from the income tax to be paid. This concerns the following matters:
- Personal deduction;
- Deduction due to no or small home debt; and
- Expenditure on income provisions.
Tax rate income tax declaration Box 1 (individuals)
If it is then clear on what amount one is liable for tax, it must be determined what rate should be used. In the Netherlands we have a progressive tax system. This means that more tax is paid, as more is earned. We generally have two rates in box 1:
- Taxable income up to € 73,031 on this a rate of 36.93% is applied.
- Taxable income from € 73,031 on which a rate of 49.50% is applied
Example: Someone with a taxable income of, for example, € 100,000 paid a rate of 36.93% on € 73,031 and then a rate of 49.5% on the remaining € 26,969.
Finally, the rate that has to be paid does not always depend solely on the amount of income. When you have reached retirement age in the Netherlands and therefore receive an AOW benefit, a special rate is applied. People with this age pay a rate of 19.03% on the part up to € 37,150.
Income tax declaration Box 2 (individuals)
In this box, income resulting from having a significant interest is taxed. A taxpayer has a significant interest if he holds at least 5% of the shares in a private or public limited company. In this box 2, both the regular income and the income from a sale of the interest are taxed. Regular income is, for example, dividend payments. But also the profit made from the sale of shares is taxed in this box 2.
The rate in box 2 is a fixed rate and is currently 26.9%. This has been gradually increased in recent years; The rate has been 25% for a long time. This rate must be paid on regular income from the ownership of shares, as well as on any profit obtained from the sale of shares.
Income tax declaration Box 3 (individuals)
In this box, the income obtained from savings and investments is taxed. What is striking about this levy is that one does not look at the actual return obtained. Box 3 assumes a predetermined fictitious return. This is also called the flat-rate return. This fixed return depends on the amount of the capital and, since the year 2022, also on the composition of the capital.
Determining the fixed return is done by looking at the category under which the capital falls.
Currently, the tax authorities hold three different flat-rate returns that are important for determining the amount of tax to be paid. After applying the fixed return, it is determined on which amount of tax must be paid. The current situation is as follows:
Asset category Percentage of fixed return:
Savings 0.36%
Debts 2.57%
Other assets 6.17%
Currently, in box 3, the rate used is 32%. The fixed return is adjusted each year on the basis of the actual returns achieved in the previous year over the different types of investments. Every taxpayer has an exemption in box 3. It is currently set at € 57,000
Payroll tax
Wage is income and your employer already pays the withholding tax for this. Every month, this withholding tax on payroll tax is deducted from your salary and paid by the employer. The amount of the payroll tax is the difference between the gross salary and net salary. Every year, this withholding tax is deducted from the final income tax declaration. Usually you get money back from the tax authorities, partly due to the deductions.
Dividend tax
Also dividend is a source of income. Every year, this withholding tax on dividend tax is deducted from the final income tax declaration.
Income tax declaration
Important are all deductions. After all, you don't want to pay tax if you don't have to, or you don't want to pay too much tax. Many people forget deductions because they are not aware of them. The tax authorities themselves do not check if people pay too much tax. The surplus of paid tax is not something the tax authorities notice. If you do not give up the deductions to which you are entitled, you will lose the surplus of tax paid. AGA Fiscalisten knows exactly which rules should be applied and ensures that you have to pay as little tax as possible.
Questions from individuals about income tax
The following questions that we regularly receive from private individuals about income tax:
- What are the income tax changes in 2023?
- What deductions are there for income tax and how do I process them?
- How are old-age reserves included in the income tax declaration?
- What are the tax credits?
- How should I change or stop a provisional assessment?
- What is wise to include in an objection or appeal?
- How should I include dividends in the income tax declaration?
There are many other tax questions and issues asked to our tax professionals than the above regarding income tax. You can also submit all these questions to us. We provide clarity and solve your tax issue or question.
Why tax advice from AGA Fiscalisten concerning income tax?
AGA Fiscalisten stands for high-quality expert tax advice. All our tax specialists are senior tax specialists, have years of tax experience, and have graduated from the university in tax law and hold the title "mr.".
A (senior) tax specialist specializes in tax law while a tax advisor has only completed tax courses. A tax advisor has much less knowledge than a tax specialist and often makes mistakes with potentially significant financial consequences. It is wise not to settle for a non-qualified tax advisor, but to engage an expert senior tax specialist. This way you avoid problems, fines or procedures and you do not miss out on tax benefits due to advice that is not sufficiently expert.
High quality tax specialist; Master title mr. and years of experience
All our tax specialists have years of tax experience and the "mr." title. The most recent developments and changes concerning taxation and all relevant legislation is studied and discussed by our tax specialists. This gives us the opportunity to clarify all the problems and issues about taxation. We achieve the best possible result for our customers. Tax advice, tax declarations, financial advice, legal advice or discussion partner, AGA Fiscalisten will arrange it for you!
Contact AGA Fiscalisten
The tax specialists of AGA Fiscalisten can do a lot for you, from an answer or advice to your tax questions to guidance throughout the entire process. If you have any questions or issues and would like high-quality tax advice, please contact one of our expert experienced tax specialists for an intake interview free of charge and without obligation.
NEED TAX ADVICE? Call: 040-8489888 1st free and non-binding intake interview. Available by phone: Monday to Friday between 09.00h and 20.00h) We can also be reached by e-mail: info@agafiscalisten.nl or via the contact form on the right side of our website.
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