Why do I have to submit my worldwide income?
You should inform the Dutch tax authorities about your worldwide income through the Worldwide income return form (in Dutch: formulier Opgaaf wereldinkomen). But what is your worldwide income? As the name already implies, it is the total of your Dutch and foreign income together. Think about your Dutch labor income plus your foreign assets. In this article, we will explain why and when you have to file the worldwide income return form.
When do you have to submit your worldwide income?
You only need to file the worldwide income return in the following situations:
- you or your benefit partner lived abroad during a certain year, and you received a benefit (e.g., the healthcare benefit or childcare benefit);
- you or a family member lived abroad and paid a non-resident’s health insurance contribution (in Dutch: buitenlandbijdrage Zvw) to the CAK (Central Administration Office).
You are benefit partners if you are married or in a registered partnership. However, someone that lives with you can also be our benefit partner (toeslagpartner). Check here whether you have a benefit partner.
Worldwide income return mandatory
It is good to know that if you meet the conditions mentioned above, you are obliged to declare your worldwide income. The Dutch tax authorities will send you the Worldwide income return form. You can find the address and deadline on the cover page.
Do you not do this? Then, it will be disadvantageous for you; the tax office will determine your worldwide income. As a result, you have to repay the received benefit(s). Therefore, you must request a written extension if you can’t make the deadline.
What happens with your worldwide income?
But why are the Dutch tax authorities interested in your worldwide income? By using this, they determine the height of:
- your benefit (if you fail to declare your worldwide income in time, the tax office stops paying you);
- the non-resident’s health insurance contribution (Zvw);
- the allowance from the CAK.
Why the non-resident’s health insurance contribution?
Do you live outside the Netherlands, but do you receive a pension or benefit from the Netherlands? In that case, you may have to pay the non-resident’s health insurance contribution. It is also possible that you have paid too much contribution (for example, if you emigrate, but your employer still contributes to the tax office). In this case, you can request a refund from the Dutch tax authorities.
What is the CAK?
The CAK, Central Administration Office, is the link between people and government regarding healthcare. The CAK implements a scheme for people who do not fall within the Dutch healthcare system.
We are happy to help!
Did you receive the worldwide income return form? We are happy to help you file it completely and correctly! Or do you have other tax-related questions? Please, contact us using the information mentioned below.