Glossary
The Dutch words you'll see on tax letters, payslips and government websites, explained in plain English.
Definitions are based on the official pages of the Belastingdienst, Rijksoverheid and SVB. Checked in October 2026.
- 30%-regeling the 30% ruling
- A tax benefit for some employees recruited from abroad: your employer can pay part of your salary tax-free, for up to five years.
- aangifte inkomstenbelasting income tax return
- The yearly return where you report your income and wealth to the Belastingdienst.
- algemene heffingskorting general tax credit
- A tax credit taken off the income tax you owe: up to €3,115 in 2026. It gets smaller as your income rises.
- AOW state pension
- The Dutch state pension. You build up 2% of the full amount for each year you live or work in the Netherlands in the 50 years before your AOW age.
- arbeidskorting labour tax credit
- A tax credit for people who work, taken off the income tax you owe: up to €5,685 in 2026. It gets smaller on higher incomes.
- Belastingdienst Dutch Tax and Customs Administration
- The government body that collects Dutch taxes and checks your return.
- bijzonder tarief special withholding rate
- The rate your employer uses to withhold tax on one-off payments, such as holiday pay and bonuses.
- Box 1 income from work and home
- The part of Dutch income tax that covers your salary, freelance profit and your own home.
- Box 3 savings and investments
- The part of Dutch income tax that covers your savings and investments. It taxes an assumed return on what you own on 1 January.
- BSN (burgerservicenummer) citizen service number
- Your personal number for Dutch tax, healthcare and government services.
- DigiD government login
- Your personal login for Dutch government websites, including Mijn Belastingdienst.
- fiscaal partner fiscal partner
- Usually your spouse or registered partner, or someone you live with under certain conditions. Fiscal partners can divide some income and wealth between them.
- forfaitair rendement assumed return
- The percentage the government assumes your savings or investments earned. Box 3 tax is calculated on this, not on your real return.
- heffingskorting tax credit
- An amount taken off the tax you owe. Most employees get the general tax credit and the labour tax credit.
- heffingsvrij vermogen tax-free allowance
- The part of your wealth that Box 3 ignores: €59,357 per person in 2026.
- M-biljet M-form
- The income tax return for the year you move to or leave the Netherlands.
- Prinsjesdag Budget Day
- The third Tuesday of September, when the government presents next year's budget and tax plans.
- schuldendrempel debt threshold
- The first part of your debts that doesn't count in Box 3. Only debts above it reduce your Box 3 wealth.
- tegenbewijsregeling counter-evidence scheme
- A way to show the Belastingdienst that your actual return was lower than the assumed return, so you pay less Box 3 tax.
- toeslagen allowances
- Monthly payments from the government towards costs such as health insurance, rent and childcare, depending on your income.
- vakantiegeld holiday pay
- An extra payment of usually at least 8% of your gross salary, paid in May or June. If you earn more than three times the minimum wage, your contract can set a lower amount.
- voorlopige aanslag provisional assessment
- An advance tax bill or refund for the current year, based on an estimate of your income and wealth.
- werkelijk rendement actual return
- What your savings and investments really earned. The government plans to base Box 3 on actual returns in future.
- zorgtoeslag healthcare allowance
- A monthly contribution towards your health insurance premium, if your income is low enough.