FRECUENTLY ASKED QUESTIONS
INCOME TAX IN THE NETHERLANDS
- Gemeente = Municipality or Town Hall
- Belastingdienst = Dutch Tax Authorities
- Kamer van Koophandel (KVK) = Dutch Chamber of Commerce
- Toeslagen = Department of allowances in the Netherlands
- DigiD = Electronic signature in the Netherlands
- Social Verzekeringsbank (SVB) = Social security office in the Netherlands
In the Netherlands there are four types of forms to file the income tax:
- FORM M : This form is used to declare income, the year in which the declarant arrives or leaves the Netherlands. For this, the document of registration or cancellation of resident in the town hall ( Gemeente ) is essential.
- FORM P: It is the form for residents and is used to declare income when you have spent an entire calendar year, from January 1 to December 31, in the Netherlands, that is, when you have registered partially at the municipality ( Gemeente ) throughout this period. You must declare income, properties, bank accounts, and actions inside and outside the Netherlands. You must review the tax treaties of the country in which you have the assets.
- FORM C: If you registered with the Municipality ( Gemeente ) during the whole calendar year, from January 1 to December 31, as RNI (non-resident), with address outside the Netherlands.
- FORM F : It is the declaration form for a person’s year of death. Dutch Tax Authority (Belastingdienst), will send it to the correspondence address you have in use, to contact the next of kin. Debts, income, or assets are transferred to the deceased person’s relatives.
All people who reside in the Netherlands and have any income have to file income tax.
If you received a letter of invitation from the Tax Agency ( Belastingdienst ), you are obliged to file the income tax on the date mentioned in the declaration letter, otherwise, you will receive a fine for not doing it on time. In general, the letter may mention that you must send the declaration between March and April of the year you receive the letter.
If you did not receive the invitation letter from the Belastingdienst, but you have had income during the year 2022, you must file the income tax between March and April 2023, in the event that you must pay more than 49 euros in taxes (the reference year 2021) in the income tax, you are obliged to send the statement. However, you have up to 5 years to send it.
The income tax must be sent between March and April, of the year following the one you wish to declare, in the Netherlands the fiscal year is considered from January 1 to December 31.
If you have been sent a letter with a deadline, you must meet that date in the letter, otherwise, you will be fined for filing the return late.
For example, if you want to make the 2022 income tax, you can send it between March 1, 2023, until April 30, 2023. However, you have up to 5 years to send it.
You have worked as an employee
- Annual Payroll 2022 (Jaaropgaaf 2022)
- Income tax for the previous year ( Jaaroverzicht 2021)
- Personal bank statement (Jaaroverzicht 2022)
You have bought a property in the Netherlands
- Annual Mortgage Report 2021 (Jaaroverzicht hypotheek 2022)
- Valuation of the home from the previous year (WOZ 2021)
- House purchase expenses
If you have a tax partner
- You can file the declaration with your partner, only if they are fiscal partners.
- Fiscal partner is the person who is registered at the same address as you in the Netherlands, additionally has one of this options:
- who is also married or
- has a record of cohabitation or
- has children in common or
- owns a house together.
- VAT return report (BTW – Omzetbelasting )
- Company bank statement ( Jaaroverzicht 2022)
- Income tax of the previous year.
About the invitation
The tax authorities ( Belastingdienst ) estimate in advance, how much income tax you will have to pay in the year 2023. That is why they send you a provisional assessment for 2023 in January 2024.
- This is a mandatory invitation. The advantage you have is that when the provisional evaluation for 2023 is sent, you would pay fewer taxes in the final evaluation for 2023 since you paid the taxes in advance (only in case you have to pay taxes).
- It may seem strange to you that you already have to pay taxes by 2023.
Still, that’s not so crazy. Because many people already pay taxes in the tax year itself.
If you receive wages or benefits, your employer or benefits agency withholds tax each month and pays it to the Tax Agency ( Belastingdienst ) for you.
- Do you have income other than wages or a benefit?
Or do you have assets, such as savings or stocks? In that case, too, you will start paying taxes in the same year. With a provisional evaluation 2023.
- You should check if the provisional assessment of 2023 is correct.
If you must pay taxes, you can choose:
Pay in a maximum of 11 instalments – The amount of the 1st instalment must be received by the Tax Authorities before March 1, 2023.– If the total amount is in the account of the Tax Authorities before March 1, 2023, then you will receive a discount.
If the data of your 2023 provisional assessment is not correct
– You can change the 2023 provisional assessment, contact your tax advisor.
Payroll tax credit (Loonheffingskorting) is a discount on your income tax and national insurance contributions. If you work as an employee, your employer takes into account the general tax credit ( algemene heffingskorting ) and the worker’s tax credit (arbeidskorting) on your payslip. In other words, you pay less payroll taxes and receive more salary.
How does the payroll tax credit work?
If you work as an employee, you are entitled to a tax break, but it should only apply for 1 job during the year.
You can request this tax discount from your employer or on many occasions your employer can also ask if you want to apply this tax discount.
The form that you must sign with your employer, to have this tax discount is called ‘Model opgaaf gegevens voor de loonheffingen’ (Statement data model for payroll taxes), however, if you already signed it for 1 employer during the year, you should not sign it for a second employer as you would have to return the extra discount, which is not It would correspond to you, in the income tax. It is advisable to only sign it with the employer that obtains the highest annual income.
What happens if you work for more than 1 employer at the same time or during the entire tax year?
Then you only need to apply for the payroll tax credit for 1 employer only. If you claim a payroll tax credit with every employer you have during the year, you’ll take too much of your tax break and likely have to pay tax back on that year’s tax return.
If you work for multiple employers consecutively in 1 year, then you can claim the payroll tax credit from any employer. But remember that you only apply this payroll tax discount to only 1 employer per fiscal year.
What happens when you work for an employment agency or temporary work agency (ETT) ?
When you work for an employment agency, you may be sent to work for different companies. However, because you only work at the agency, you really only have one real employer.
So if you only apply the payroll tax discount to this employment agency, there would be no problems, since it would only apply to one job.
You can review the following link on other types of tax credits that exist:
Check the following page of the Dutch tax authorities to find help for payment reference and declaration, settlement or decision number:
On the following page, you can review what you have accumulated in your pension, from the different pension organizations, in the Netherlands: https://www.mijnpensioenoverzicht.nl/