Taxes Seminar and walk in tax mornings
4 February 2017
Seminar and walk in mornings organised by Limes International and the Expat Centre Leiden
Seminar: The Expat Cente and LIMES international will organise an event on March 8 explaining the Dutch tax system and 30%-ruling in more detail.
Place: Voorschoterweg 23G, Valkenburg
The maximum number of guests for this event is limited (40): first come, first serve, so email now to ensure your spot on the guest list.
Walk in mornings: In the month March LIMES international is also available at the Expat Centre Leiden for general questions regarding taxes on March 16 from 9.30am until noon and on March 24 from 9.30am until noon. Please feel free to step by in case you have any general questions.
Obligation to file a tax return
To start with some good news: often, you are not obliged and it is not worthwhile to file a Dutch tax return. This is generally the case if you only had Dutch employment income during the complete calendar year and you are not entitled to any deductions (like mortgage interest) and you did not receive an invitation (blue envelope) to file a Dutch tax return.
In the following situations it is required or can be worthwhile to file a Dutch tax return:
1. You are invited to file your Dutch income tax return
2. You arrived or left the Netherlands sometime during the year
3. You paid mortgage interest on a loan relating to your own house in the Netherlands
4. You paid alimony payments, educational or other deductible expenses
5. You expect that Dutch income tax is due
In the Netherlands the tax year coincides with the calendar year. Your 2016 Dutch income tax return must be submitted between March 1 and May 1, 2017. You may request for a further extension, but this should be filed before May 1, 2017. You can do so by contacting the tax authorities directly or your tax advisor.
If you file your tax return before April 1, 2017 it is guaranteed that you will receive a reaction/preliminary assessment before July 1, 2017. If you file your return before May 1, it is expected that you receive a reaction before July 1, 2017.
How to file
You can file your Dutch tax return via the website of the Dutch tax authorities. However, this is only available in Dutch and you will need your DigiD. Please note it may take a few weeks to arrange for your DigiD, so if you do not have one yet, we advise to apply for one soonest (at www.digid.nl). You will also need this DigiD to activate your account at www.MijnOverheid.nl, which is used for digital communication from the Dutch tax authorities since 2016.
Another possibility to file your tax return is the use of the tax return app 2016. Finally, you can file your tax return with the help of a tax advisor.
Types of forms
Various forms will have to be used based on your personal situation. The most common are:
P form : for individuals who are employed and have lived in the Netherlands for the entire fiscal year
M form : for individuals who arrived or left during the tax year
C form : for individuals who are not living in the Netherlands but have Dutch sources of income
It is important to use the correct form. If not, the handling of your return can be delayed considerably. Furthermore, in case of immigration or emigration, you need to be aware of the possible tax implications in the country you are leaving or going to. If not considered carefully in advance, this may lead to double taxation.
After filing your return, you will receive a preliminary assessment. Normally this will take 6-12 weeks. In case of an M-form, this may take up to 24 weeks. It should be emphasized this is only an estimation of the tax assessment or refund. The tax authorities have up to three years plus the period granted for possible extension to issue a final assessment. Only after receipt of the final assessment, your tax return can considered to be reviewed/finalized.
The interest to be paid on individual income tax assessments is very high, i.e. 4% (!). To avoid interest, you will have to understand the following rules.
If you file your tax return before April 5 and the tax authorities agree with your return and issue an assessment, the tax authorities will not charge interest.
In case you file your tax return after April 5 and the tax authorities agree with your return, the tax authorities will charge interest on the amount to be paid. The interest will then be calculated as from July 1 until 19 weeks after receipt of the return.
In case you file your tax return before April 5 and the tax authorities do not agree with your tax return, the tax authorities will charge interest on the amount to be paid. The interest will then be calculated as from July 1 until 6 weeks after the date of the assessment.
In case you have filed your tax return and the tax authorities agree with the return and issue a tax refund, you will receive interest as from July 1 until 6 weeks after the date of the assessment. Obviously, you can already apply for a provisional refund in case you do not want to wait for the refund.
Provided certain conditions are met, certain expenses are tax deductible. Examples are:
- employee’s part of commuting expenses by public transport
- mortgage interest and other expenses regarding the mortgage loan
- annuity premiums
- alimony and child support
- extra-ordinary medical expenses
- educational expenses
- maintenance expenses for listed monumental houses
It should be noted that since 2015, non-resident taxpayers may considered to be qualifying non-residents taxpayers provided certain conditions are met. If so, they are entitled to the same deductible expenses, tax credits and the tax free box 3 amount as residents.
It may not be necessary or that difficult to file your Dutch income tax return. However, if in doubt, you can always contact a tax advisor.