- Know your monthly gross (excluding bonus, holiday allowance etc)
- If your employer is paying for the health insurance, add € 200 per adult in your family including you .
- If 30% ruling is applicable, multiply above value by 0.7. Else multiply by 1. This is the ‘taxable wage’.
- Multiply upto €55,500 of your ‘taxable wage’ by 0.58.
- Multiply anything exceeding €55,500 by 0.48.
- If 30% ruling applies to you, multiply 3 by 0.3. Else it is 0.
- Add values from 4, 5 and 6. This is your very rough take home salary for the month.
- Note: Employer may also pay bonus, 1 month salary/year as holiday bonus etc. This is taxed at 52% flat.
- There are also some tax credits to the tune of about 3000 euros per year that apply.
A good tax calculator is available at http://www.expatax.nl/calculations/grosstonet/gross-net.htm
30% ruling: A person employed directly from abroad may be eligible for ‘30% ruling’. If you are approved, your first 30% of the salary is completely tax free for the first 8 years of your stay in Netherlands. Income tax is calculated according to the tax-slab on 70% of your salary. For details on eligibility criteria, I found these website useful: http://www.taxpat.com/en/F.A.Q.-s/Questions-Regarding-the-30–Ruling–Netherlands-Tax-Benefit-#1 and http://www.expatax.nl/30ruling.php
Non-working spouse tax refund: A non-working spouse is eligible to get approx €160/- per month as tax-refund. You need to apply for it at a local tax office. Go to your local tax office and explain your background. They will help you fill the form. You will need your Residence Permit/Passport, BSN, spouse salary slip, bank account number of you or spouse. Per my understanding, you must have lived in Netherlands for minimum 6 months to get this….not very sure about this rule. Note: The amount will be credited in the name of the non-working spouse. However, the bank account number can be of the working spouse….it need not even be a joint account.
Grocery shop: Albert Heijn will most likely be your grocery shop of choice. They give free ‘bonus card’. Ask for it. When shopping in future, if you show this card at the checkout counter, you will get discounts on some items.
Tax-refund for first year: For the employed, irrespective of when you move to Netherlands, your employer will withhold tax from your salary as if you were earning for the full year. So if you have moved to NL after January 1, you have most likely paid more taxes than you should have. You can claim this back from the tax-office in the next year. The procedure is: at the beginning of the next year (ex;2013), your employer will send you an annual statement called ‘Jaaropgave’ for the previous year (ex:2012). After you receive this, call the tax-office (0555 385 385) and request for a tax/return form (they will speak in English on this number). You will get a booklet via post. Though the form is in Dutch, an English version of the instructions manual for 2008 is available on their website (click here for the manual). There will be minor differences between 2008 M form and the current year M form. But the manual should be a good help. Fill the form and send it.