Filing your income tax return in the Netherlands

If you run a sole proprietorship ( eenmanszaak ) or general partnership ( vof ) in the Netherlands, you have to file the earnings from your occupation via an income tax restitution ( aangifte inkomstenbelasting ) each year. Find out about dutch tax brackets, earnings, deductibles, amortization and more. In the Netherlands, you pay income tax over your taxable earnings. This is called inkomstenbelasting. taxable earnings are your earnings subtraction deductibles and fiscal schemes, such as costs made for your company or amortisations. You must file your income tax retort with the dutch Tax and Customs Administration before 1 May of each year. The Tax Administration uses the tax return to determine your tax appraisal : will you have to pay tax, or get a tax refund ?

File your tax refund correctly and before 1 May

You have to file your income tax return digitally. You can find the form in the code environment of the web site, Mijn Belastingdienst ( alone in Dutch ), from 1 March. File your income tax return before 1 May. It is potential to apply for an extension. You can file your tax return yourself, using tax return or fiscal administration software, or via a tax mediator. Either way, you need a DigiD to verify your identity.

If you live afield, read here about applying for a DigiD. once you have obtained your DigiD, you can go to the web site of the dutch tax authorities and download the electronic tax return program. The Belastingdienst gives an overview of information you need when filing your tax retort .

Do you have to file a dutch income tax return ?

Everyone who receives a announcement letter from the dutch Tax and Customs Administration has to file an income tax return. You besides have to file an income tax return if you have not received a letter, but have earned income in the Netherlands. Did you not receive a letter ? You can check whether you have to file a tax refund. You may even get a tax refund. For model, if you have deductible items. The tax authorities do not have all your data data, such as your medical expenses. Read more about deductions ( aftrekposten, in Dutch ). In some situations you have to pay tax. For model, if your savings exceed the tax-exempt allowance. < .p > You can check it by filling in a test declaration on Mijn Belastingdienst ( only in Dutch ). a long as you do not send the datum, you will not file a contract. After you have completed ( but not however send ) your declaration, you will immediately see the resultant role. If it appears that you will receive a refund of € 16 or more, file a contract. Is the measure to be paid less than € 48 ? then you do not have to file a declaration.

Legal entity or not?

In the Netherlands, legal entities are required to file a corporate income tax return. Businesses that are not legal entities, like a sole proprietorship or a general partnership, file an income tax recurrence. Read more about legal entities .

What if you do not reside in the Netherlands?

If you are registered with the Netherlands Chamber of Commerce KVK, either as a resident clientele or a occupation with a ramify in the Netherlands, you will receive a declaration letter to file for income tax. broadly speaking, the dominion is that if you receive income from the Netherlands, you are apt to pay income tax, evening if you do not reside in the Netherlands. however, if your business is not in the Netherlands, but you have employees working temporarily in the Netherlands, you are normally not liable for paying income tax in the Netherlands. If you are a freelance master work on an assignment in the Netherlands, you may have to file an income tax return, depending on respective circumstances. Contact the Tax Administration to find out if you have to file or not. If you are a non-resident taxpayer, you are required to file a tax return in the Netherlands if :

  • you have received an invitation to file a return;
  • you have not received an invitation to file a tax return, but you earned income in or from the Netherlands over which you owe more than €48, or are entitled to €16 or more back from the Tax Administration.

How much income tax do you have to pay ?

There is no easy answer to that, as it depends on several factors :

  • your income
  • your assets
  • deductible costs
  • outstanding debts

You can check how much income tax you will have to pay by completing the tax return. Based on the information you provide, you will see how much you will have to pay, or how much you can expect to receive, before you file the tax tax return .

Estimate your income tax

The Netherlands Chamber of Commerce KVK offers an income tax calculation cock ( in Dutch ), that helps you get an mind of how much income tax you have to pay as an eenmanszaak, partner in a vof, or as owner / major stockholder ( DGA ) in a bv .

Check Dutch income tax deductions and fiscal arrangements

You pay income tax over your taxable earnings. That is to say, your income minus deductible items and fiscal allowances, like renovation costs made to the office and asset depreciations. The dutch Tax and Customs Administration ( Belastingdienst ) divides these earnings into different brackets, or boxes. Read more about these boxes and the percentage of tax that is levied on each on the Belastingdienst web site ( in Dutch ).

When filing your tax return, you may make use of several deductibles and fiscal arrangements. This will lower your profit and the amount of income tax you have to pay. The entrepreneur valuation reserve ( ondernemersaftrek ), for case, consists of a number of such deductibles .

Income tax in 2022 slightly lower

The income tax rate over 2022 has been lowered by 0.03 %. Read more on the lower income tax .

Increase in general tax citation ( arbeidskorting )

The general tax credit ( arbeidskorting ) is gradually increasing over the time period 2020 – 2022. The increase means that employees and employers who are liable for income tax, and have an income of between €10,000 and €98,000, will have to pay less income tax. The measure besides means that employees who earn between €20,000 and €35,000 will benefit supernumerary if they decide to start working longer hours. Read more .

Related Posts