Tax rules revised On January 1 2001, a new personal income tax regime will come into force in the Netherlands. The new rules completely overthrow the present system of income tax for private individuals by introducing a revolutionary concept of passive income taxation. Whereas now dividend and interest income is taxed at the full marginal rate of up to 60%, under the new rules tax on all investment income will be completely abolished and substituted by a flat 30% tax on a 4% deemed income on net wealth, which effectively resembles an annual net wealth tax of 1.2%. The new rules will generally not apply to non-residents. The domestic dividend withholding tax rate on dividends of 25% (for non-residents) will continue to apply.
May 31, 2000