In the Netherlands you have to pay income tax over your taxable earnings. This is called ‘inkomstenbelasting.’ The ‘Dutch’ fiscal year runs from 1 January to 31 December. Your income tax return has to be filed with the Dutch Tax Authorities before 1 May of each year. Unfortunately the Dutch tax system is anything but simple, especially for expats. But we can help you with our online tax filing service.
Online service for individuals with employment income and/or other income and deductions.
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In the Netherlands income is divided into three different types of taxable income. Each type of income is taxed separately under its own schedule, referred to as a ‘box’. Each box has its own tax rate(s). That’s why we call it: the box system.
When you received income which hasn’t been taxed, you are legally obliged to request a form and file a tax return. In the Netherlands you have to file a tax form that is based on your situation. The following forms can be filed by individuals.
The form that is applicable to your situation should be used and filed to the Dutch tax authorities. If the Dutch tax authorities expect a different type of form based on the information that is available to the authorities (e.g. registration with Dutch municipality) then they will not except nor handle the Dutch tax return filed. You can than either file the form the Dutch tax authorities expect or request for a change of tax form. We are happy to support you with the preparation of your Dutch income tax return as well as taking care of the change of tax form with the Dutch tax authorities.
In case you have a tax partner, you may complete the tax return together with your tax partner. The entire income and all deductions are divided between you and your tax partner. The exemptions are also doubled. Think for example of the tax-free assets in box 3. The tax-free capital then amounts to € 114,000 in 2023.
You have a tax partner if you meet one of the following conditions:
In the Dutch tax legislation a distinction is made between resident taxpayers and non-resident taxpayers what has to be reported and therefore included in your Dutch tax return. Dutch tax resident are taxable in the Netherlands for their worldwide income (except for individuals that have the 30%, for period eligible). Dutch tax non-resident are only taxable in the Netherlands for certain income elements. Do you want to know more about the differences between resident and non-resident taxpayers? Read more in our blog ‘Resident taxpayers vs non-resident taxpayers in the Netherlands’ .
In the Netherlands, we also have a system whereby you can deduct certain expenses you have incurred from your income before it is taxed. Since you cannot do this in the interim, you deduct these costs when you file your tax return. So the taxable income is: total income – expenses you can deduct = taxable income. The taxable income is then less than your total income and this of course saves a considerable amount of money.
The personal deduction consists of:
Other deductible expenses:
Tax credits are discounts on your taxes that you must pay. These discounts depend on your personal situation. We can, of course, help you find out which discount applies to you.
There are a number of different tax credits:
• General tax credit
• Employment Tax Credit
• Income dependent combination rebate
• Young Disabled Persons Credit
• Elderly Persons Credit
• Single elderly tax credit
• Discount on green investments
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With our unique portal, you can easily prepare your own income tax returns.
All this in only 3 easy steps.
Expat Service helps expats with an online tax filing service for their income tax return. Efficient, simple and affordable tax filing whenever and wherever you are in the world. That’s why Expat Service is the intelligent choice for every expat.
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