Tax return in the Netherlands

Personal income tax return in the Netherlands

Need help with filing your 2018 personal income tax return (or older years) in the Netherlands and did you receive the “blue envelope” from the Dutch tax authorities. MFFA Tax advice can support and assist you with this if you live in the Netherlands or abroad. At the end of this article we will describe what we need from you to complete and file the Dutch income tax return for individuals.

In order to provide as good as possible services to you we have prepared a brochure called Income tax and social security in the Netherlands The brochure supports employers and employees with income tax questions in the Netherlands.

For those who are leaving the Netherlands / emigrating, click here

Personal income tax return – Frequently asked question

We receive many times questions regarding the Dutch personal income tax return. Please find below an overview of these frequently asked questions:

What is the difference between a tax resident and non-tax resident?

You have two types of tax residents, namely tax residents and non-tax residents. A tax resident is someone who works and lives in Holland. A non-tax resident is someone who lives abroad and have income in or from the Netherlands and whereby the Netherlands is allowed to tax the earned income. Both tax residents must file the personal income tax return in the Netherlands every year.

A non-tax resident may opt to pay income tax according the same rules as tax residents (for example you have certain tax credits or can deduct also the paid mortgage interest on the house). In case this is not done, you have to file a so called C-form issued by the Dutch tax authorities.

In case the Netherlands has concluded a tax treaty with the country the person is living in, it could be that the Dutch tax authorities are not allowed to tax certain income of you. Please contact us of you want more info about this topic.

When is a M-form used in the Netherlands?

In a year when a person migrates to the Netherlands a special form called M form (in Dutch) must be filed at the Dutch tax authorities. The M form shows a foreign period and resident periods. Based on the tax treaty it can be determined if specific foreign income must be reported or not.

The M form is a quite complicated tax form when to file income tax return in the Netherlands and can not filed electronically but only in hardcopy. Filing this migration form requires a Dutch tax advisor.

Filing the regular tax return in the second year will be done with our electronic system. If necessary, we can use our special extension ruling which we concluded with the Dutch tax authorities. The ruling allows us to file the personal income tax return later (May 1st of the next year).

What if I work temporary in the Netherlands?

If you work temporary in the Netherlands, so you did not work and live the whole year in the Netherlands, you see many times that this lead to a refund of tax. Also people who are not living in the Netherlands but only worked for a short period of time here will have a tax refund. This can be done by filing a tax return at the tax authorities. See here for more info about working temporarily in the Netherlands

What kind of information is needed for filing the personal income tax return?

If you want us to file and prepare the 2017 Dutch personal income tax return for you, we need to have the following information from you:

  • The tax invitation issued by the Dutch tax authorities
  • The annual income overview issued by the employer (jaaropgave)
  • The paid mortgage interest amount and the WOZ value of your house (if applicable)
  • Study costs paid (if applicable and more then € 500)
  • Overview of your world wide assets (if applicable)
  • In case you are living together or if you are married, info about your partner (name, BSN)

Is it mandatory / obliged to file a Dutch personal income tax return?

If you receive an invitation from the Dutch tax revenue to file your income tax return, you are required by law to file and to submit it. If you don’t do this, there is a risk that the Dutch revenue will give you a fee.

If you don’t receive an invitation from the Dutch tax revenue to file the income tax return, an invitation needs to be requested in case it can be foreseen that Dutch income tax is due in a certain year.

The change is high that in the first year you file a tax return, a tax refund can be expected.

Filing for the first time a tax return?

When you have to file for the first time a personal income tax return in the Netherlands, it can be done in hardcopy (M-form) and not electronically or you should consult a tax advisor which uses their own program. As described above regarding the M-form, you see many times that filing for the first time results in an advantage for the tax payer by having a tax refund.

More info about filing your income tax return?

Do you want more info about filing your income tax return or when the filing deadline for the personal income tax return is? You can fill in the contactform or call us on +31 (0)85 00 30140.

For entrepreneurs / self-employment / eenmanszaak and filing the income tax return, click here