## Kingdom of the Netherlands—Netherlands: Selected Issues

_IMF Staff Country Reports, February 11, 2016_

## Source details

**Canonical URL:** [Kingdom of the Netherlands—Netherlands: Selected Issues](https://www.imf.org/en/publications/cr/issues/2016/12/31/kingdom-of-the-netherlands-netherlands-selected-issues-43695)

## Other formats

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## Bibliographic details
- Published: February 11, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475557695.002

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### Main findings
- The paper sketches ways to shift the taxation equity-efficiency frontier outward in the Netherlands.
- Significant efficiency gains could be achieved by shifting the tax burden away from labor, and toward consumption and capital—especially housing.
- The tax-benefit system has a detrimental impact on labor supply—in particular by mothers.
- The value-added tax (VAT) is used insufficiently and in a distortionary manner as a revenue-collection mechanism.
- The paper reviews the main features of the Dutch tax system and sketches the contours of a hypothetical tax reform.

### Policy recommendations and reform directions
- Shift the tax burden away from labor toward consumption and capital, with particular attention to housing taxation.
- Reform the tax-benefit system to reduce labor supply disincentives, especially for mothers.
- Broaden and strengthen the use of the value-added tax (VAT) as a less distortionary revenue-collection mechanism.
- Design a hypothetical tax reform that reviews the main features of the Dutch tax system and implements measures to improve equity-efficiency trade-offs.

### Scope, subjects, and keywords
- Pages: 45
- Publication date: February 11, 2016
- Series: Country Report No. 2016/046
- Issue: 046
- Volume: 2016
- DOI: https://doi.org/10.5089/9781475557695.002
- ISBN: 9781475557695
- ISSN: 1934-7685
- Subject: Expenditure, Labor, National accounts, Pension spending, Pensions, Personal income, Self-employment, Wages
- Keywords: CR, earnings, Europe, freelance worker, Global, income, income tax, ISCR, net earnings, Pension spending, Pensions, Personal income, pillar II pension, rate, risk pooling, self-employed contractor, Self-employment, solvency ratio, Wages

*Source: Kingdom of the Netherlands—Netherlands: Selected Issues (IMF Staff Country Reports 2016, 046).*

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## Content in this bundle

- **Kingdom of the Netherlands--Netherlands: Selected Issues; IMF Country Report 16/46; January 8, 2016**
  - [Kingdom of the Netherlands--Netherlands: Selected Issues; IMF Country Report 16/46; January 8, 2016 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr1646.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/kingdom-of-the-netherlands-netherlands-selected-issues-43695_