Frequently Asked | Income Tax Return
We have several international clients who moved to the Netherlands, and we use this section to answer the most frequently asked questions. In this topic, we will answer the frequently asked questions from our customers related to the income tax return.
When do I have to file my tax return?
Normally, from the 1st of March, it is the time again to file your annual tax return at the Belastingdienst (Dutch Tax Office). The tax return must be filed before the date on the letter you have received from the tax office.
It is important that the tax return is correct so you don’t pay too much or too little. The TaxSavers helps you with filing a complete and correct tax return. This way, you prevent getting a penalty.
Where can I find my annual income statement?
The annual income statement contains everything you have earned from one employer. Do you have multiple employers? Then you also have several annual income statements. The employer sends your annual income statement to you at the beginning of the year, often in January or February.
Do I always need to file my tax return?
You don’t always have to file your tax return.
If you have received a letter from the Belastingdienst stating that you have to file a tax return, you are obliged to file it. But please note: if you have not received a letter from the Belastingdienst, it does not immediately mean that you do not have to file a tax return.
The Belastingdienst has a lot of information, but not everything. For example, they do not have your deductible items, such as medical expenses. But how do you check this? It is possible to make a so-called test declaration on “Mijn Belastingdienst“. It works the same as a normal tax return, only you do not send the data. You will immediately see the outcome.
When do you have to file the declaration?
If you get more than € 16 back, it is wise to file a tax return (amounts under € 16 will not be paid out by the Belastingdienst). When it says that you have to pay more than € 47, you are obliged to send the tax return (if it is less than € 47, you do not have to file a declaration). If you don’t do this, you can expect a fine.
What tax return form applies to me?
First of all, it is good to know that there are four forms to file your tax return. The M-form, P-form, C-form and F-form.
You need to file the M-form in the first year you moved to the Netherlands or in the year of emigration. This form can only be filled in manually (43 pages) and is only available in Dutch, which makes it even harder for expats. The TaxSavers have the mandate to directly file the M-form for you so it saves you time (and probably speeds up your tax return). Of course, you can also apply for the M-form yourself, but in case you use our services you can sit back and relax and we prepare and file the M-form for you. The TaxSavers can provide you the tax return in English or Dutch.
The P-form is the most common tax return in the Dutch Tax System. The following years (after you filed the M-form), you have to file the P-form. As opposed to the M-form, the P-form is online available. This makes it a lot easier. Nowadays, the Belastingdienst already fills in a large part of your tax return. But our advice is to always check your data.
The C-form is relevant to you if you have lived outside the Netherlands the whole year but did receive a Dutch income. Examples of a Dutch income are capital income, annuity, pension or maintenance. You also have to file this when you have a second house in the Netherlands.
Unfortunately, there are a lot of things that must be arranged when a beloved one passed away. The F-form is one of them. This is a paper version of a tax return, and it is quite extensive. However, you only have to fill in the applicable fields. At The TaxSavers, we understand you do not want to deal with this. If you give us a call, we are happy to help you.
To what do I have to pay attention when filing the annual tax return?
Check your data
Firstly, you always have to check your data. Nowadays, the Belastingdienst already fills in a large part of your tax return. However, that does not mean that it is all correct automatically. Therefore, be careful and check all data carefully.
Also, it is important to check the costs you may deduct from your box 1 income, called deductible items. This may result in paying less tax. Examples of deductible items are study costs, costs for buying a house, health costs and donations.
The next thing to keep in mind are the allowances. This is a compensation you get for specific costs. Whether you are eglible for an allowance depends on your personal circumstances. It is advisable to check whether you are entitled to one of the allowances. The allowances that are present in the Dutch tax system are healthcare allowance, rent allowance, child budget and childcare allowance.
This only implies to you if you had a fluctuated income in the past years. In that case, averaging your income can be interesting to you.
How does it work?
- Add your box 1 taxable income of the 3 uninterrupted years;
- Divide this amount by 3. This is your new (average) taxable income for those years;
- The Belastingdienst calculates how much tax you would have paid based on the amount determined at point 2.
Do I have to pay inheritance tax?
In most cases, you have to pay inheritance tax. But on a part of the inheritance, you do not have to pay tax. The amount of this exempt part depends on your relationship with the deceased. On the website of the Belastingdienst, you can find an overview in which you can see how much exemption you will receive. Also, the Belastingdienst has a handy tool where you can calculate how much inheritance tax you have to pay.
The Belastingdienst sends a letter to one of the heirs (often partner or oldest child) within 4 months of the death. This letter states whether the heirs must report the inheritance tax.
Do I have to pay gift tax?
You do not always have to pay gift tax. Several gift exemptions depend on the value of the gift, the purpose of the gift and the relationship with the donor. In the table below you can see the amounts of the gift exemptions.
|Child (18 – 40)||One-time payment of €26,457 (in case of an expensive education €55,114)|
|Child (18 – 40 year or other recipients under the age of 40)||One time payment of €103,643 intended for own house)|
|Other recipients||Yearly €2,208|
If you exceed the amount of the exemption, you must, therefore, pay gift tax. You can calculate how much tax you have to pay using the table below.
|Gift height||Partner en children||Grandchildren and further descendants||Other persons pay on the value|
|€ 0 – € 126,723||10%||18%||30%|
|€ 126,724 and up||20%||36%||40%|
Give us a call and we are happy to help!
Do you still have questions after reading the frequently asked questions of our customers? Don’t hesitate to ask them. Or do you want help with filing the annual tax return? Fill in our contact form or give us a call on +31 (0)20 – 2170120.