Income tax returns for 2024 can be filed starting from February 1, 2025. Everyone will be talking about getting their blue envelope in the post and filing their taxes. The question is, should you worry if you don't get an envelope and do you need to file?
The 2024 income tax return
The 2024 income tax return is for reporting your income over the calendar year 2024. This means you report your worldwide income and your worldwide assets.
30% ruling exceptions
Those who obtained their 30% ruling before January 1, 2024, have the choice as to whether to complete Box 3 for worldwide assets or not, until the end of their 30% ruling. In the year that their 30% ruling ends, they need to pro-rata report their worldwide assets in Box 3.
Employees who obtained the 30% ruling during 2024 only have the choice of filing worldwide assets in Box 3 for this tax return. For the 2025 tax return onwards, their worldwide assets must be reported.
Does everyone need to file an income tax return for 2024?
In the Netherlands there are roughly 5 million tax residents with a source of income. They might be employees, entrepreneurs or dividend receivers. The Dutch tax office is not keen to invite 5 million tax residents to file their tax returns, so they select who needs to do so.
Who is not invited to file a tax return in the Netherlands?
There are lots of people in the Netherlands who will simply pay tax via their salary, and they will not be invited by the Dutch Tax Authority (Belastingdienst) to file their taxes. You will not be invited if you meet all of the following criteria:
- You have had the same, single employer for the whole of 2024.
- You do not own a house.
- You did not receive tax credits for day care, rent or healthcare.
- Your combined assets do not exceed 57.000 euros.
If you meet all of these criteria, it is not unusual to not hear anything from the tax authorities and you are not expected to file your taxes.
Could those not invited still be obligated to file their taxes?
It could be that, at the moment, you are not invited to file an income tax return. However, if you become aware that you in fact should have filed a tax return, you should do so, regardless of having been invited or not. It is your responsibility to know the law and how it applies to your finances. In this instance, taxes can be filed up to 14 days after the May 1, 2025 deadline.
While every tax resident of the Netherlands is expected to know the tax laws, don't worry too much. Most long-term residents do not know the law, let alone newcomers. Nevertheless, that is the basis on which the Dutch tax office holds you accountable.
One thing that the Dutch tax office may not be aware of but that can trigger an obligation is your worldwide assets. Remember, the moment that you possess combined worldwide assets of more than 57.000 euros, you must file a tax return, no matter which countries they are held in. If your assets are abroad, it is likely the Dutch tax office will not know that you have passed the threshold and will not issue you an invitation, even though you will have an obligation to file.
When should you consider filing a tax return even if not invited?
There might be years in which something changed in your financial situation that didn't trigger a filing request from the tax office, but could still benefit you if you complete a full tax return.
The most common example that impacts expats is filing for the year that you migrated to or from the Netherlands. Due to privacy rules, your employer cannot use the knowledge they have of you having moved your tax residency. Therefore, the employer needs to withhold the wage tax amount as if you earned this salary for the full year, which can impact to which tax bracket you get allocated.
For example: You arrived in the Netherlands in September 2024 and started a job with an 80.000-euros salary. Based on your yearly salary, you employer will apply the 49,5 percent tax bracket to your wages. However, because of the low number of months you worked in 2024, your total salary for 2024 did not reach the 49,5 percent tax bracket.
This means that if you file a migration tax return for your arrival year, whether invited to or not, there is a strong possibility of receiving a rebate. Of course, if you were already invited to file, you have no choice.
Do you need to file if you have been invited to do so but have nothing to report?
The tax office doesn't know it all, despite what they may claim. If you have been invited to file, the tax office is under the assumption you have something to report. Until you file, the tax office has no reason to assume otherwise.
In other words, make sure you complete the tax return before the deadline in order to prove to the tax office that you have no obligations to them.