Income Tax in The Netherlands - Threshold Income

Threshold Income

The sum of the incomes in the three boxes is the "threshold income". It determines thresholds for tax deductions, e.g. for gifts (see below).

The deductible amount is subtracted from the income in box 1; if this is not enough, the remainder is subtracted from the income in box 3, and finally from box 2.

Read more about this topic:  Income Tax In The Netherlands

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