Box 1


In Box 1 you are taxed on your 'income' earned from former and current activities. This includes, amongst others:

all salary payments (including bonuses, stock option exercises, severance payments, etc.);

income from your proprietary business

income earned as an freelancer, artist or professional athlete

alimony payments received

pension distributions

social security distributions

certain annuity distributions

deemed income from ownership of your primary home

The extent of the income that will be subject to Dutch taxation will depend on your Dutch tax residency status

From this income, you are allowed to claim certain deductions such as:

deduction for mortgage interest payments on qualifying loans for your primary home

deduction for contributions to qualifying retirement accounts

deduction for contributions made for loss-of-income insurance

The net of your income and deductions is taxed at progressive tax rates.