Anyone earning an income is liable to pay IB (income tax). You will find IB to consist of 3 boxes. Box 1 is to pay tax on your income from work and home. Box 2 is relevant to you if you own more than 5% of the shares in a BV (privately held corporation), box 3 applies to your assets such as savings and a second home. The three income tax boxes each have different rates. In many cases you will be entitled to deductions and tax credits. You then pay less income tax, or perhaps even none at all. The medical expenses deductible is an example of such a deductible, and the earned income tax credit is an example of a tax credit.