Taxation of income in the Netherlands

The purpose of this work is to describe the current state of tax system in the Netherlands. This system is interesting because it combines elements of high progressive taxation of income of individuals with large tax savings for a holding company based in the Netherlands. The paper describes the design of income tax of individuals and legal persons in the Netherlands and compares them with the Czech legislation. Description of these two taxes is held according to design of tax in this order: subject of tax, object of tax, expenditures, tax base, deductions from the tax base, tax rate, tax credits, tax collection and administration. Further, there are also described other taxes of tax mix of the Netherlands. The Dutch tax system in comparison with the Czech is characteristic of higher clarity. This is due to the reduced number of exclusions and exemptions from the subject of taxes and greater harmonization of tax rates in individual Boxes. This creates a basis for effective administration and tax collection, thereby reducing opportunities not only for tax evasion, but tax avoidance