So, little one, taxation in the Netherlands is when the government takes a little bit of money from the grown-ups' paychecks every month to pay for things that everyone needs, like schools, hospitals, police officers, and roads.
The Dutch government uses a special system to make sure everyone pays their fair share of taxes. They figure out how much money grown-ups make each year and then tax them based on that amount. The more money someone makes, the more they have to pay in taxes.
But the government also understands that it's important for everyone to have enough money to take care of themselves and their families. So, they have something called "tax deductions" that can help people reduce the amount of taxes they have to pay. For example, if mommy and daddy have a mortgage on their house or make donations to charity, they may be able to deduct some of that money from their taxes.
Once the government collects all the taxes, they use the money to pay for things that everyone in the country needs, like schools, hospitals, police officers, and roads. So when you're walking to school or playing at the park, know that those things are being paid for by everyone's taxes. And that's how taxation works in the Netherlands!