Personal income tax return

You have two types of tax residents, namely tax residents and non-tax residents. A tax resident is someone who works and lives in Holland. A non-tax resident is someone who lives abroad and have income in or from the Netherlands and whereby the Netherlands is allowed to tax the earned income. Both tax residents must file the personal income tax return in the Netherlands every year.

A non-tax resident may opt to pay income tax according the same rules as tax residents (for example you have certain tax credits or can deduct also the paid mortgage interest on the house). In case this is not done, you have to file a so-called C-form issued by the Dutch tax authorities.

In case the Netherlands has concluded a tax treaty with the country the person is living in, it could be that the Dutch tax authorities are not allowed to tax certain income of you. Please contact us if you want more info about this topic.

The M form is a quite complicated tax form when to file income tax return in the Netherlands and cannot filed electronically but only in hardcopy. Filing this migration form requires a Dutch tax advisor.

Filing the regular tax return in the second year will be done with our electronic system. If necessary, we can use our special extension ruling which we concluded with the Dutch tax authorities. The ruling allows us to file the personal income tax return later (May 1st of the next year).

If you want us to file and prepare the Dutch personal income tax return for you, we need to have the following information from you:

• The tax invitation issued by the Dutch tax authorities
• The annual income overview issued by the employer (jaaropgave)
• The paid mortgage interest amount and the WOZ value of your house (if applicable)
• Study costs paid (if applicable and more then € 500)
• Overview of your worldwide assets (if applicable)
• In case you are living together or if you are married, info about your partner (name, BSN)

If you receive an invitation from the Dutch tax revenue to file your income tax return, you are required by law to file and to submit it. If you don’t do this, there is a risk that the Dutch revenue will give you a fee.

If you don’t receive an invitation from the Dutch tax revenue to file the income tax return, an invitation needs to be requested in case it can be foreseen that Dutch income tax is due in a certain year.

The change is high that in the first year you file a tax return, a tax refund can be expected.

When you have to file for the first time a personal income tax return in the Netherlands, it can be done in hardcopy (M-form) and not electronically or you should consult a tax advisor which uses their own program. As described above regarding the M-form, you see many times that filing for the first-time results in an advantage for the taxpayer by having a tax refund.