The following statements are required for VAT purposes on invoices: date of issue; a specific number; where necessary, the VAT identification number of your company and your client (basically in international situations); full name and address of your company and your client; description of the goods or services; quantity of goods supplied or, if necessary,…
If you have decided to follow a course or to go to University, for example to get your MBA these costs can be deductible if the purpose is to get a better job or to make a career step within the current company. The following education costs can be deductible enrolment fee application fee costs…
The general VAT rate is 21%. For certain products and services the lower rate of 9% is applicable. This for example includes the basic needs of life like food. Some products and services are exempted. For these the rate of 0% applies.
Question: Can an exceptional free reimbursement be given for double accommodation costs while maximum use is already being made of the 30% ruling? Answer: No, as stated in the Explanation Memo on the Revision Decree of 20 December 2000 the costs of double accommodation have a predominantly extraterritorial character and for this reason are entered…
Part of the salary which qualifies for the 30% ruling Qualified are for example: the agreed monthly salary (fixed or variable) holiday allowance bonuses option rights token money obligatory premiums tantiemes Part of the salary which doesn’t qualify for the 30% ruling Excluded are for example: a redundancy/severance payment tax free) cost allowances (travel allowance,…
If the application is filed within 4 months after the start date of the employment contract the 30% ruling can be issued with retro active effect till the start date of the contract the moment it is granted. If the application is made later then 4 months after the start date of the contract then…
Question: I would like to know that in case I am laid off from a job where I have a 30% ruling, is my ‘ontslagvergoeding’ also tax-exempted for the first 30%? Answer: The 30% ruling is not applicable on a redundancy payment, the Supreme Court confirmed that on January 25, 2008. Only regular/present income (including…
Question: I am requested to file an M form. What is it? Answer: In the year of migration a so called M-form must be filed with the tax authorities. The M-form is a complicated tax form. It combines a foreign period with a resident period. Whether income in both periods must be declared in the…
Tax refund if you were not in the Netherlands the entire year The fact that you arrived in or left the Netherlands during the year will almost always lead to a refund. The same if you were not living in the Netherlands at all but only worked here for a short period. The following reasons…
Yes, if you set up a business you can choose a business name. Make sure the name doesn’t look like the name of another business too much, especially if the other company is offering the same services or sells the same products as you will do. Your business name should also not look like an…
An overview of the 2019 income tax rates, social security premiums and tax credits in the Netherlands.
The Dutch tax system If you live in the Netherlands, you qualify as a resident taxpayer. If you live abroad and receive income from the Netherlands that is taxable in the Netherlands, you qualify as a non-resident taxpayer. In both cases, you will be subject to Dutch income tax. Types of income For income tax…
This is information taken from the website of the Customs and only here for your benefit. If you have any questions please contact customs directly. See the website of customs. Expatax can’t answer specific questions about importing a car or bringing your pet to the Netherlands. Introduction This text contains information for people who are moving to the…
Question: I live in the Netherlands since 2006 and my parents have suggested that they may give me a gift of money which they would pay into my Dutch account. Would I be taxed by the Dutch authorities on this? Answer: Dutch gift duties do not have to be paid if the person who donates…
Treaty of Friendship, Commerce and Navigation, with Protocol and Exchange of Notes WHEREAS a treaty of friendship, commerce and navigation between the United States of America and the Kingdom of the Netherlands, together with a protocol and an exchange of notes relating thereto, was signed at The Hague on March 27, 1956 WHEREAS the originals…
Expatax can only set up payrolls for companies, it would not be cost effective for a contractor to set up a payroll in this way. A single contractor who needs payroll services would be best off contacting a so-called Umbrella Company to do this.
You can check this yourself by answering a few questions in our simple online tool.
The tax authorities send out the invitations to file a tax return from January each year. The invitation can be sent later though. If you have received aninvitation to file a tax return a deadline will be applicable. The deadline is mentioned on the invitation. It is important that you check your personaldetails which are mentioned…
There are different types of forms: P form: tax return for private individuals; C form: for foreign residents with income from or certain assets in the Netherlands; M form: for the year of migration; O form: tax return for business owners and freelancers. There are also (online) forms which are used to request a provisional…
The 30% ruling can be granted for a maximum period of 5 years (used to be 8 years until January 1, 2019 and 10 years until 1 January 2012). The time that the employee has stayed or worked in the Netherlands in previous years is subtracted from this maximum period of 5 years. Only if…
The State Secretary of Finance has announced in February 2004 which costs can be reimbursed tax free as extra territorial costs and which costs will be treated as normal labour costs. If the 30% ruling is granted and included in the payroll administration then the extra territorial costs can’t be reimbursed again separately, but the…
Yes, if the incoming employee obtains another employer during the period concerned, the 30% ruling remains in effect at the joint request of the employee and the new employer, provided that the period between the end of employment by the old employer and the conclusion of the employment contract with the new employer does not…
It is not possible to build up a pension on the extraterritorial reimbursement in the same way that it is not possible to do so on other free compensations or free provisions.
Yes, for the period in which the 30% ruling is granted (maximum 5 years), the employee is considered to stay in the Netherlands temporarily. This won’t change if the employee for example buys a house here or takes other actions which indicate a more permanent stay in the Netherlands.
If you own a property in the Netherlands and you use it as your main residence then you may be able to claim some tax deductions. These deductions can be claimed in your tax return. Deductible are costs related to the mortgage. You can also claim a provisional monthly refund. This has to be done…