Income tax return for taxation also vary, making comparisons all the more difficult. Countries that tax income generally use one of two systems: territorial or residential. In the territorial system, only local income – income from a source inside the country – is taxed. In the residential system, residents of the country are taxed on their worldwide (local and foreign) income, while nonresidents are taxed only on their local income. In addition, a very small number of countries, notably the United States, also tax their nonresident citizens on worldwide income. Countries with a residential system of taxation usually allow deductions or credits
Income tax in the Netherlands employed and self-employed people there is an employment rebate. The wage withholding tax is a deduction of wages, social security benefits and pensions, as an advance payment for the income tax, paid through the employer, etc. See also . From 2006 there is a new national health insurance scheme ("zorgverzekering(swet)", "Zvw" ). The premium is partly income-dependent and paid as a tax supplement. It applies for the "contribution income" ("bijdrage-inkomen" ), which is part of box 1, including labor income, social security benefits, pensions, and life annuities (it does not include the "owner-occupied dwelling income"). It is withheld if the