Income Tax
Income tax, or personal income tax, is an important part of the tax system in many countries, including the Netherlands. Income tax is a tax that individuals and businesses pay to the government based on their taxable income. It is an important source of revenue for the government and is used to fund public facilities and services, such as health care, education, infrastructure and social programs. Income tax is usually levied annually and varies from country to country in terms of rates and rules.
Key features of income tax
Taxable income includes various sources of income, such as salaries, business profits, interest, dividends and capital gains. Taxpayers can use certain deductions and exemptions to reduce their taxable income, and tax rates can be progressive, meaning that higher incomes typically pay a higher tax rate. Governments often have tax departments to monitor compliance and ensure fair collection of income taxes. In general, income taxes serve as an important tool to support a nation's financial stability and fund government spending.
