Dutch income tax return 2018
By working, living or owning assets in the Netherlands you can become subjected to Dutch taxation. If you are considered a Dutch taxpayer, you will be required to file an annual Dutch income tax return with the Dutch tax authorities.
At the beginning of each year we recommend to review whether you should submit or is it beneficial to submit a Dutch income tax return. Intax is specialised in taxation across borders.
Our questionnairre can be download:
in word: questionnaire
in pdf the same questionnaire
Review if you are obliged to file a tax return
If you receive an invitation from the tax office to file a tax return then this must be done before 1 May 2019. If you are a non-resident during (part of) the year the deadline is 1 July 2019. Once you have received all the necessary documents the tax return can be filed.
If you receive an invitation after 1 May 2019 the deadline will normally end on the first day of the month after a whole month has passed. Brouweel Tax Services can arrange an automatic time extension of 1 year.
If you have not received an invitation from the Dutch tax authorities then it is still possible to file a tax return, for example, if you have income which is not taxed or taxed for the wrong amount or if you would like to apply for certain deductions (M-form).
Different types of tax returns
The Dutch tax authorities has several tax return forms.
Resident taxpayers who live in the Netherlands complete a P-form.
Non-resident taxpayers who earn income from the Netherlands complete a C-form.
Immigration of emigration during the year will result in a M-form.
I filed my tax return, what happens next?
If you submitted your personal income tax return with the Dutch tax authorities, you will receive a preliminary tax assessment. Once you where invited to file your tax return before 1 May 2019 and you filed before 1 April, you will receive a notice within 3 months. If your tax return was submitted with either a C or M form, it may take up to 6 months or more.
Thus, at first hand you will receive a preliminary tax assessment from the Dutch tax authorities which is based on your tax return and without being reviewed. Once they reviewed the filed tax return a final tax assessment will be received.
The 30% ruling is a tax advantage for highly skilled migrants working in the Netherlands. The ruling allows employer's to grant a free (untaxed) reimbursement for the extraterritorial costs that you incur. Which means that the employee only pays tax over 70% of their gross Dutch salary.
The employee can opt to be "partially liable to Dutch tax". The term "partial" indicates that, even if the employee qualifies as a resident of the Netherlands, he is treated as a non-resident taxpayer for Box 2 and Box 3 income, but as a resident taxpayer for Box 1 income. Hence, he is eligible for all general and personal allowances in connection with Box 1, as well as for tax credits.
Once you met the conditions and requirements you will be granted the 30% ruling. If the 30% ruling is granted after 1 January 2019 your grant is only valid for a maximum of 5 years.
Taxation on real estate within and outside the Netherlands
In case real estate does not qualify (or no longer qualifies) as a main residence, the real estate and the related mortgage loan are being taxed in box 3 rather than in box 1. The mortgage interest paid for this type of real estate is not tax deductible. However, under conditions, certain exceptions may apply, for example when the real estate is for sale or for rent.