The new year has begun, resolutions are still not broken, and it is also the time of the blue envelopes... it will soon be tax time!
In this article we take you through the basics of filing your tax return in the Netherlands by answering nine frequently asked questions.
1. When do I have to file a tax return?
It is mandatory to submit a tax return when you have received an invitation from the tax office, or when you haven’t received an invitation - but you owe income tax.
Owing income tax can be due to various reasons; for instance receiving taxable income on which no tax or insufficient tax was withheld, or you have net assets (such as a saving account or shares) with a value of over 22.000 euros.
If you are entitled to a tax rebate, but you haven’t received an invitation, you can contact the tax office to request a form.
2. I haven’t received an invitation to submit a return, what do I have to do?
You can contact the tax office directly, via their website or by phone, to request a tax form.
3. What is the deadline for filing my annual tax return?
In general, the deadline for filing your tax return each year is April 1. Nevertheless, if you receive a tax form close to deadline you have six weeks to file the return from the date the tax office issued your tax form.
4. I am not able to file my return before the deadline, can I get an extension?
Yes, you can get an extension. Upon request, an extension will be granted for a period of four months. If you need even more time, you must specify the reason and how much extra time you need.
If you request the extension through an intermediary such as a tax advisor, however, the extension will be granted until May 1 of the following year.
5. I missed the tax filing deadline, will I get a penalty?
If the tax office has issued a tax form and you have not submitted the return before the deadline mentioned on the invitation, you will receive a reminder with a new deadline. If you miss this second deadline, then you will receive a final reminder with a last deadline.
Missing this last deadline will result in a tax bill based on an estimation done by the tax office, and a penalty. The penalty amounts to 369 euros and can run up to 5.278 euros.
6. According to the outcome, I have to pay an amount. When do I have to make the payment?
Once the tax office has processed your return, you will receive a preliminary assessment. The amount payable has to be transferred to the bank account of the tax office within six weeks after the date when the the preliminary assessment was imposed.
7. I have never submitted a tax return, can I still file them?
Yes, you can still file a tax return up till five years after the relevant tax year has ended. You can also do this if you are owed a tax refund.
8. I owe a substantial amount, do I have to pay interest?
Yes, the tax office charges interest, currently four percent on the outstanding amount, starting on July 1 of the year after the tax year.
9. I have filed my return, but I haven’t heard anything back yet, is that correct?
If you have filed your tax return before April 1, the tax office will send you a notice before July 1.
In case you have submitted your tax return later than April 1, it can take up to three years before you receive a notice, but it hardly happens that it takes that long.
Patricia van der Hut is a partner at Broadstreet, providing specialist tax and accountancy services to expats.
Previously under the name Finsens, the tax, accountancy and payroll divisions were renamed Broadstreet in 2016.