Imitation is the highest form of flattery and many states have been flattering North Carolina. The number of states where lawmakers have passed or introduced similar tax reform has increased over the past year.

There are no local taxes on income in the Netherlands.North Carolina’s latest round of income tax rate reduction is the result of a bipartisan budget deal enacted last year that, in addition to the personal income tax relief, will entirely phase out North Carolina’s corporate income tax over the next decade, making North Carolina only the third state with no corporate income tax or business gross receipts tax. Please note that the tax rate of box 2 will be adjusted by 2024, by introducing two new brackets: a basic rate of 24.5% for the first EUR 67,000 in income per person and a rate of 31% for the remainder.īox 3 income (deemed return on savings and investments) is taxed at a flat rate of 32%.

* In the first bracket of box 1, national insurance tax is levied at a rate of 27.65%.īox 2 income is taxed at a flat rate of 26.9%. 2023 rates for box 1 income Taxable income (EUR) Benefits relating to income provisions.īox 2 refers to taxable income from a substantial interest.īox 3 applies to taxable income from savings and investment ( see the Income determination section for more information).Home ownership of a principal residence (deemed income).An individual's taxable income is based on the aggregate income in these three boxes.īox 1 refers to taxable income from work and home ownership, and includes the following: In the Netherlands, worldwide income is divided into three different types of taxable income, and each income type is taxed separately under its own schedule, referred to as a 'box'. The Netherlands taxes its residents on their worldwide income non-residents are subject to tax only on income derived from specific sources in the Netherlands (mainly income from employment, director’s fees, business income, and income from Dutch immovable property).

Flat income tax