How to file
Your income tax
How to file your personal income tax return in the Netherlands
As an employee you are will receive your salary on a monthly basis. This means that salary/wage taxes are also paid on a monthly basis, via withholding on your gross salary.
Entrepreneurs (Sole Proprietorship/Eenmanszaak) you will have to file a personal income tax return. Withholding taxes are not relevant, however, it can be expected by the Dutch tax Authorities that an estimated tax assessment is paid during the year (this is only the case when the Dutch tax Authorities have issued a preliminary assessment).
Everyone is required to file their Income-tax return yearly. Even when the Dutch tax Authorities have not sent a provisional assessment it is still possible that you are required to file a tax return.
When to file your income tax return?
The income tax return must be:
Everyone living or working in the Netherlands is invited to file an income tax return. When you are working in the Netherlands, it is possible that the Dutch tax Authorities are not aware of your employment. In this case, you will not be invited to file a tax return. However, you are obliged to file a tax return.
For entrepreneurs this is different. When you start a business, you will have to register your business with the Dutch Chamber of Commerce. The Chamber of Commerce will inform the Dutch tax Authorities about your registration. The Dutch tax Authorities will issue a RSIN number. With this number, you can file all tax returns that are necessary, for example, VAT, Wage tax and income tax.
How to file a tax return?
All entrepreneurs are obliged to file the following tax returns digitally:
Corporate income tax (when the business is run through a legal person);
Wage tax (only when the legal person employs staff).
You are notified by email and a letter when the tax returns are due. You can file the returns on the following website: https://www.belastingdienst.nl/wps/wcm/connect/nl/ondernemers/content/uitloggen-pdo
When to file your personal income tax return in The Netherlands
For income tax, the fiscal year runs from the first of January to the 31st of December. The Dutch tax authorities provide a time frame in which the income tax return can be submitted. Mostly this is from the first of March until the 30th of April of the following year. For example; the income tax return of 2018 had to be submitted before the 30th of April 2019. Further extension is possible, however, the request must be submitted before the deadline.
In The Netherlands different kind of forms are available, depending on the taxpayer’s situation. The most common forms are:
P-form: This form is applicable for people in a regular employment situation and has their residence in The Netherlands;
M-form: This form is applicable for people who resided in The Netherlands for only a part of the fiscal year;
C-form: this form is applicable for people who don't reside in The Netherlands, but do earn income from The Netherlands;
W-form: this form is applicable for people who are self-employed.
At first, you will receive a preliminary assessment from the Dutch tax authorities, which is based on the filed tax return. this preliminary assessment has not been checked by the Dutch tax authorities yet. After they have checked the return, a final assessment will follow. In both of these assessments, the payment details are stated.
In which country do you have to file your tax return?
When you live and work in the Netherlands you will have a resident taxpayer status. Living abroad and having any kind of income from the Netherlands on which the Netherlands is allowed to levy taxes, you will, most likely, have a non-resident taxpayer status (please see our article regarding this subject). In both cases you are obliged to file an income tax return in the Netherlands, these tax returns are different from each other.
In some cases, it is possible that two countries want to levy tax on the same income. When the Netherlands has concluded a tax treaty with this country, this treaty will explain which country can levy on that income (please see out an article regarding this subject).
To determine whether you need to pay tax or are entitled to a refund and if so, how much, you can use the services of our accounting team who can provide you with an exact calculation.
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