Tax in the Netherlands
Dutch tax return
Expatax can prepare your tax return for you. Because we prepare several thousand tax returns every year, we are more than familiar with all kinds of situations expats may face. We are specialized in tax returns with an international situation like M-forms and C-forms. An M-form is applicable in the year of migration and a C-form is applicable if you are living outside the Netherlands but have certain sources of income in the Netherlands.
We can file a tax return for you for the previous 5 years.
If you haven’t been invited by the tax authorities to file a tax return, the question is whether you need to file a tax return. In our Knowledge Base you can read about in which cases it is still smart to do so.
If you have income in the Netherlands that is subject to wage tax, your employer deducts wage tax from your salary. This deduction does not take into account your deductible items and some tax credits. If, for example, you have deductible items, then the wage tax withheld from your salary is in excess of what you owe as income tax and national insurance contributions. Once the tax year has ended, you can receive a refund of the excess amount withheld by filling in an income tax return. But you can also obtain a refund before this. You can ask the tax authorities to pay to you the excess amount withheld from your wage in monthly instalments. The same applies if you receive a pension or benefits from a (public) organisation.
Based on the information you provide on the form, the tax authorities calculate how much you will probably have to pay. In addition, the tax authorities calculate the amount in wage tax that your employer will supposedly deduct from your salary. The difference between these two amounts is the amount you receive from the tax authorities: your provisional (or preliminary) refund. You will receive the provisional refund during the year in monthly instalments. The tax authorities will only award a provisional refund if enough Dutch wage tax is withheld.
For which tax deductions can a provisional refund be obtained?
You can request a provisional refund for the following deductible items:
- public transport commuting deduction;
- deduction for the owner-occupied home that is your main residence (the mortgage interest);
- premiums towards an annuity and other income provision;
- off settable losses in previous calendar years from work and home;
- medical expenses and other exceptional expenses;
- expenses for weekend visits by seriously handicapped children;
- alimony and other maintenance obligations.
Depending on your personal financial and family situation; you may be entitled to certain tax allowances such as healthcare allowance (zorgtoeslag), home rental allowance (huurtoeslag) and the child budget allowance (kindgebonden budget).
I am Dr. R V Prasad. I come from India. As an expat, I had no idea about the taxation rules, obligations, etc., when I came to the Netherlands in 2005. I was searching for some helping hands for filing my tax returns and also help me with details about all the support systems the Dutch government offers to its Knowledge migrants. I was really lucky that one of my colleagues gave the contact of Expatax. I called Mr. Arjan Enneman and he first took all the details about my status and my family conditions and financial status. He explained patiently what I am supposed to do and also how Dutch government helps its knowledge migrants. Every year for the past 15 years Expatax has been supporting me and indeed with a fee that is highly reasonable. In the last 5 years, Mr. Pieter Veldhuizen has been so efficient and kind to help me with Tax Returns. Expatax doesn’t charge its customer more fee even if there are supplementary filings and if they have to coordinate with Tax officials to clarify queries. Lastly, it is a general perception that Tax consultants are very straight and it feels like going through a grind. However, I would like to put it on record that Expatax makes me feel that I am welcome and they are ever-ready to “listen” to my requirements and situations and help each one individually. It is NO SURPRISE that I am taking the help of Expatax for the last 15 years.
Dr. R. Venkatesha Prasad, TU Delft