Below you will find explanations of the most important Dutch terms related to taxes, insurance and administration. Understanding these terms will help you navigate the Dutch tax system.
Zorgtoeslag is a healthcare insurance allowance provided by the Dutch government to help cover the cost of mandatory health insurance (zorgverzekering). It is available to residents and workers in the Netherlands with lower incomes. The amount of zorgtoeslag depends on your income and household situation — you can apply through Mijn Toeslagen or with the help of a tax advisor.
The jaaropgave is an annual income statement issued by your employer, showing your gross salary, withheld income tax (loonheffing) and social security contributions for the past year. This document is essential for filing your Dutch tax return (belastingaangifte). You receive a jaaropgave from every employer you worked for during the tax year — it is usually available in February.
The BSN (Burgerservicenummer) is your unique personal identification number in the Netherlands, similar to a Social Security Number in the US or PESEL in Poland. You need the BSN for legal employment, tax filing, healthcare access and all contact with Dutch government agencies. You receive your BSN automatically when you register at your local municipality (gemeente) after moving to a Dutch address.
DigiD is a digital identity system used to log in to Dutch government services and public institutions online. With DigiD you can file your tax return, apply for benefits (toeslagen), check your records at the Belastingdienst and use UWV services. Anyone with a BSN and a registered Dutch address can create a DigiD account at digid.nl.
The KvK (Kamer van Koophandel) is the Dutch Chamber of Commerce where all businesses must register before operating in the Netherlands. Registration is mandatory for sole proprietorships (eenmanszaak), partnerships (VOF) and limited companies (BV) alike. After registration you receive a KvK number that identifies your company in the official Trade Register (Handelsregister).
BTW (Belasting over de Toegevoegde Waarde) is the Dutch Value Added Tax, equivalent to VAT in other EU countries. The standard rate is 21%, the reduced rate is 9% (covering food, medicine, books, among others), and the zero rate applies to certain international supplies and services. Registered entrepreneurs must charge, remit and periodically declare BTW through the BTW-aangifte (VAT return).
The WW-uitkering is an unemployment benefit based on the Dutch Werkloosheidswet (Unemployment Insurance Act) for employees who lost their job through no fault of their own. To qualify, you must have worked at least 26 weeks in the last 36 weeks before becoming unemployed. The benefit is 75% of your last earned salary for the first 2 months, then 70% — the application is filed through UWV.
Huurtoeslag is a rent allowance from the Dutch government for people with lower incomes who rent a home. It helps cover part of the rental costs, provided the rent falls within set limits. The amount of huurtoeslag depends on your income, age, rent amount and household composition — you can apply online through Mijn Toeslagen.
Kinderopvangtoeslag is a childcare allowance for working parents in the Netherlands, covering part of the costs of daycare (kinderdagverblijf), preschool (peuterspeelzaal) or after-school care (buitenschoolse opvang). The key requirement is that both parents must be working, studying or participating in an integration course (inburgeringscursus).
The kindgebonden budget is an income-dependent child supplement paid on top of the regular child benefit (kinderbijslag) from the SVB. The amount depends on the number of children, their ages and the combined family income — the lower the income, the higher the supplement. You do not need to apply separately; it is calculated automatically by Belastingdienst/Toeslagen.
The voorlopige aanslag is a provisional tax assessment issued by the Belastingdienst based on your estimated income for the current year. It allows you to pay or receive tax refunds in monthly instalments throughout the tax year, rather than a lump sum. After you file your final tax return (definitieve aanslag), the difference is settled — any overpayment is refunded and any shortfall must be paid.
A ZZP'er (Zelfstandige Zonder Personeel) is a self-employed professional without employees, similar to a sole proprietor or freelancer. ZZP'ers work independently, invoice their own clients and are responsible for their own taxes, insurance and administration. To become a ZZP'er in the Netherlands you must register your business at the KvK and obtain a BTW number — you may also benefit from tax deductions such as the zelfstandigenaftrek (self-employed deduction).