It is March again, which means it’s time to file your annual tax return. It is important to not just blindly file your annual tax return to prevent paying too much or too little taxes. Did you already file a tax return before? A useful tool of the Belastingdienst is that they already fill in your income tax return with the information they have of you. However, it is important to always check this yourself because the Dutch tax office doesn’t know everything about your situation.
Keep in mind the deductible items
The Dutch tax system knows several deductible items, those are costs you may deduct from your taxable income in box 1. Think of study costs, health costs, and costs that are related to buying your own house. Good to know is that you have to pay attention to this yourself, the Dutch tax authorities don’t have this kind of information about you. That is why you should always check the pre-filled tax return. More information about the deductible items can be found here.
Did you receive the M-form?
If you moved to the Netherlands, there is a big chance that you received the M-form. And if you did not receive this yet, you probably will soon. If you did not live in the Netherlands for the whole year, you have to file a migration tax return (the so-called M-form). The reason for this is that the Dutch tax office needs specific information about you, and through the M-form, you can provide that to them. Unfortunately, this M-form is only available in a Dutch paper booklet and, therefore, can’t be filed digitally. If want to know what you need to know when filing the M-form step-by-step, click here.
Did you buy a house?
This is also a special situation where you have to pay extra attention to your tax return. Buying a house has a big impact on the yearly tax return. The first thing you should take into account is the notional rental value, which is a fictitious income in addition to your taxable box 1 income. But besides adding something to your taxable income, there are also some deductible costs that you may deduct from your income. Think of the financing costs, mortgage interest, notary costs, and the penalty interest. You will find everything you need to know when you bought and/or sold a house here.
If you have any questions about these topics, visit the website of our partner The TaxSavers or call them on + 31 (0) 20 – 2170120.