Question: I am a Dutch national, and I will be returning to the Netherlands after 22 years of continuous expat life. Before leaving, I was a student. Assuming I meet the criteria, will the duration of the ruling be reduced by 25-22=3 years, ie from 5 to 2 years ? Answer: Unfortunately the situation for…
An overview of the 2018 income tax rates, social security premiums and tax credits in the Netherlands.
Question: I am a young master and have been granted the 30% tax ruling. When I turn 30 will it be re-evaluated and will the income requirement be higher? Answer: From the first day of the month following the month in which you reach the age of 30, your salary must be at least the…
Two questions: If one member of the family (spouse) is enjoying the 30% ruling and the dependent spouse found a job here with a Dutch company, is the dependent spouse eligible to get the 30% ruling? Is the dependent spouse also eligible to exchange the foreign driving license if the other spouse has the 30%…
Question: I forgot to file a tax return in a previous year. Can I still file an income tax return for that year with the Dutch tax authorities? Answer: It is possible to file a tax return for the previous 5 years. You can do this on your own initiative, without being invited by the…
Once the limited company is set up there are certain obligations and tax returns which need to be filed. An administration must be set up and kept up to date. Annual accounts must be prepared including a publication report for the Chamber of Commerce. VAT returns must be filed (every quarter, month or year). A corporate…
A limited company may be incorporated by one or more ‘incorporators’, being either individuals and/or legal entities. One single individual or entity alone, whether Dutch or foreign, may be the only incorporator and full Board of Management at the same time; no secretary is needed. If there is only one shareholder, this fact will not…
No, since January 1, 2006 the capital tax in the Netherlands is reduced to zero. Capital tax was levied on the raising of capital or equity by a legal entity, and was levied on that legal entity itself. The capital tax rate was 0.55%. So when someone established a BV and deposited a capital of…
Dutch language course You may consider that Dutch lessons are deductible as work related expenses. Unfortunately since 2001 work related expenses are no longer deductible. Instead you receive the labour deduction (arbeidskorting) if you work and have an income out of it. This means that Dutch lessons are not deductible as work related expenses. Another…
Since it is not always possible to file a tax return before the general deadline of May 1 it is possible to request a time extension. If you can’t make the deadline just write a letter to the tax office or call them stating that you need some extra time. The tax office will then…
The tax year in the Netherlands is in principle equal to the calendar year. This applies to the personal income tax and also to corporate income tax. Only for corporate income tax it is possible to arrange a different tax year if the book year of the company is not according to the calendar year…
What is the WOZ? The WOZ value is the value of your property for tax purposes. This value is assessed every year by your municipality. They send you a statement showing the value and you can request to receive the underlying report. WOZ values are based on market values. Assessments are carried out in the…
Question: I have the 30% ruling but I want to quit my job and become self employed. Can I keep the 30% ruling? Answer: It totally depends on the actual set up whether you can (partially) keep the 30% ruling if you decide to become self employed. The 30% ruling is only applicable on income…
Question: Is it possible to divide up the wage into a part that is wage and a part that is a free reimbursement for extraterritorial costs? Answer: No, only an administrative division of the wage is not possible. A division in the sense that the wage is lowered according to employment law with simultaneous granting…
Employment tax credit (or employed person’s tax credit) A taxable person is entitled to the employment tax credit if he/she receives one of the following types of income: salary / wage; business profit; result from other activities. The income must be earned with current work. So it is not applicable on unemployment benefits, long term disability…
Of course Expatax can assist you with the preparation of your Dutch income tax return. Because we prepare several thousand tax returns every year, we are more than familiar with all kinds of situations expats may face. We offer efficient and effective service in the calculation and filing of your individual income tax return, provisional income…
Question: I am due to move to Holland and my employer believes I will qualify. Does this ruling mean that I will effectively be tax free on earnings say of € 85,000 per annum, or is 30% taken as a deduction and I pay tax on the balance? If so, what would be the rate…
Expenses in the research phase of your business It may be that you are thinking about starting your own business. You are doing some market research and you are already buying some equipment. Save all the receipts and invoices you receive regarding these expenses. Once you have started and registered your business you may claim…
If goods or services are exempted from VAT, the VAT on the expenses made to produce these goods or services can’t be claimed back. If the goods or services are taxed with 0%, the VAT on the related expenses may be claimed back though. So a VAT rate of 0% can be more beneficial then…
There can be several reasons why you ask this question. You have requested a VAT number but it hasn’t been granted yet After you started your business you have registered with the tax authorities and requested a VAT number. Now it seems you have completed your work before you have received the VAT number. You…
Period of retention of documents Private individuals For private individuals the law does not officially state how long the administration should be kept. So it is not determined how long for example pay slips and bank statements must be kept. But because the tax authorities can call in additional tax for the last 5 years…
Question: I work in the Netherlands since September 2018 but just last month I had a permanent contract. According to my understanding I am currently eligible for the 30% ruling. My employer prepared a letter to support my request. Can I still make the request to have 30% ruling or is it too late? Answer:…
BSN: Citizen Service Number – your Dutch tax identification number What is a BSN? The citizen service number – in Dutch written as Burgerservicenummer or BSN – is a unique personal ID number of every citizen who is registered in the population register (Municipal Personal Records Database) at the municipal authorities. The citizen service number…
16 april 2013 Due to a mistake we didn’t receive one envelope with a list of 1,000 tax returns, but for each tax return a separate envelope. And more envelopes will follow…. We receive blue envelopes every day. But such a large number led to the idea to do something with it. So in the…
Source: Supreme Court 19 June 2015 For workers from abroad with specific expertise there is a special benefit: the 30% ruling. Sometimes the application is only filed if the employee is employed for some time, while the regulation has been adjusted since the start of employment. What regulations should apply in order to assess whether…