Five things you should know about filing your tax return in the Netherlands in 2019

Are your Dutch co-workers going through heaps of paperwork at this moment? Has there been a blue envelope from the ‘belastingdienst’ at your desk for a couple of months now and still haven’t gotten around to opening it? Time to get busy then because that special day is coming, yes we’re talking about King’s Day the last day to file your tax return in the Netherlands.

Since we’re better at online jokes than filing taxes, we partnered up with the tax heroes of Tysma Lems to bring you 5 things you want to know if you need to file a tax return in the Netherlands in 2019

(for the year 2018, yes it’s complicated, read on to understand)

#1 The final date: before the 1st of May (but not really)

In case you’re confused, we’re talking about filing taxes over the year 2018. So If you’ve just arrived in the Netherlands then you’re off the hook this week. The tax office wants to see you filing your return over 2018 before the 1st of May 2019. So that means that the 30th of April is the latest day that you can submit it, right?

Is this you when the deadline comes near?

 

Get an extension of your tax deadline

Luckily, for those that haven’t completely got their administration shipshape (we know you’re reading this) don’t despair! It’s perfectly normal to get an extension of the tax deadline. We asked Tysma Lems about this: “You may get an extension until the 1st of September, leaving you with the whole Summer to work on it.”

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Bet that’s a load off your chest right?

#2 What makes filing a tax return for expats in the Netherlands different: the 30% ruling

Ah the beloved 30% ruling, that lovely part of the story where the Dutch taxman gives expats a fiscal break of 30% in order to cover the costs they encounter when they need to settle into the Netherlands in order to work here.

But what’s this? Things are changing? 

The Dutch government decided to shorten the 30% ruling! The ruling is now valid for 8 years but this will be shortened to a maximum of 5 years. This ‘shortening’ will take effect on January 1st, 2019. However, there’s some kind of a transition period for the expats here already, here’s the last news we had on the 30% ruling.

Luckily, this all doesn’t matter with your tax return for 2018. A good expat tax intermediary can help you with all the implications that the 30% ruling has for your tax return in the Netherlands.

#3 Personal tax deductions and how to do your tax return if you own a house?

Time for some good news! There’s a whole range of personal deductible items that are valid your tax return in the Netherlands over 2018. The deductible items on the list change frequently and every year the details are different, so it might be wise to consult a tax advisor if you’re not completely sure how and if you can deduct certain costs.

The best one of all is also on the list, tuckered away like it’s a small fish ‘costs of your owner-occupied home’.

There are some massive tax cuts in your reach if you’re a homeowner. Let’s check some out:

First of all, let’s start with the lovely Dutch word of ‘hypotheekrenteaftrek’ (mortgage interest deduction). You can declare the interest you pay over your mortgage and this is deductible from the amount of taxes you have to pay.

Certain costs that you made when buying a house are also deductible from taxes, with an almost instant advance also possible. I’m talking valuation costs, the fee for the ‘NHG’ (National Mortgage Guarantee) and some of the notary fee’s.

A good tax intermediary can save you tons of money on your tax return in the Netherlands when you’re a home-owner.

#4 Filing taxes in two countries

Filing a tax return in the Netherlands is hard for the average Dutch person but nearly impossible to do for the expat that has more than one income or also had an income in a different country. And then there are tax treaties to take into effect and especially for Americans things are rather complicated.
In order not to have to pay tax 2 times in 2 two countries over the same income source, the Netherlands grants a credit to compensate for the tax owed outside the Netherlands. Often this is referred to as the double tax relief.
But sadly, this is as far as this DutchReviewers knowledge of international tax wisdom goes. Tysma Lems has a tried and tested method for these situations and are experts in filing taxes in two or more countries.

#5 Go Pro. Get a tailored approach and save money!

In case you’re thinking, can’t somebody else take care of all this? Well, you’re right then because often that’s the smart way to go. Sure, if you have a regular income – no house and no special situations whatsoever it might be do-able for yourself (just have to work yourself through that Dutch tax office interface). But for a lot of you it makes perfect sense to call in an intermediary. Not only to save a whole lot of time and making sure you can sleep like the innocent-tax-paying-angel you are but also because a good tax advisor can save you a lot of money in the long run. Often spotting deductable stuff you yourself probably haven’t thought about.

It’s why we teamed up with Tysma Lems this year. They will give you a personal and tailored treatment and quote – because if you’re going to need a tax advisor your situation needs a personal approach. They’ve been in the international tax game since 1953 and can get you the most out of the stickiest of fiscal situations and have offices in a variety of countries, perfect if you have an international tax situation going on. So don’t hesitate to contact them directly for a quote or to find out how they can help you with filing your tax return in the Netherlands in 2019.

PS. Not going to make that 30th of April deadline for filing your Dutch tax return? Tysma Lems will gladly help you get that extension!

4 COMMENTS

  1. Hi,
    My name is Akshay.I worked in Nijmegen,Netherlands from December,2017 to June,2018 as an Intern(Student) for 6months. I paid tax between these period and I have the pay slip also.Can I claim for tax?And One more thing is now I am non resident of Netherlands.

    Thank you!

    Kind Regards,
    Akshay.

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