Are you ready for the new tax season?
It is almost that time of the year again: from March 1st, you can file your annual tax return. Of course, it is important to file a complete and correct tax return. The Dutch tax system changes every year, and, especially for internationals, this can be challenging. To save you time and taxes, we will give you some tips and tricks that come in handy when filing the annual income tax return or the M-form.
1. Always check the pre-filled tax return.
The Dutch tax authorities (Belastingdienst) already have a lot of information about you: they already pre-fill your tax return with this information. But please make sure to always check this information! Because the tax authorities don’t know everything. For example, they don’t know whether you are entitled to deductible items and allowances.
2. Get the most out of the deductible items.
The Dutch tax system knows several deductibles: some costs are deductible from your taxable income in box 1. As a result, you have to pay less income tax. Some examples are study costs, health costs, spousal alimony, mortgage interest, and financing costs related to your own house.
3. Bought a house?
When you buy a house, some things change in your fiscal situation. The notional rental value is the first thing you should keep in mind. This is a fixed percentage of the WOZ-value of your house. On this part, you have to pay income tax. But on the other hand, you may deduct some costs you made regarding the purchase of your house from your taxable income, and of course, the mortgage interest is tax-deductible.
4. First or last year’s tax return. The so-called M-form!
Did you move to the Netherlands, or did you leave the Netherlands during the year? In that case, you have to file a migration form (the M-form). Filing the M-form may be difficult for you because it is only available as a Dutch paper version tax return. But the taxes you have to pay are withheld based on your estimated annual salary. That is why, if you only lived in the Netherlands for a part of the year, you probably paid too much income tax, and that will result in a refund.
We can understand that filing a tax return is not the easiest job to be done. Especially when you just moved to the Netherlands and have to file the M-form. Our partner, The TaxSavers, is specialized in filing tax returns and is happy to help you with all your questions regarding the Dutch tax system. Feel free to reach out to them for a free introduction by contacting them at email@example.com / +31 (0) 20 217 0120 or fill out their contact form.