Employees already pay taxes through the amount of money withheld from their monthly wages. However, this is just an advance payment on what you are expected to pay.
Besides your wages, you might also have other sources of taxable income, such as income out of freelance activities or business activities. On the other hand, you might also be entitled to some tax credits or deductions because of your personal circumstances.
Annual tax return
In the beginning of every year, a tax form for the previous year becomes available at the Tax Administration website. Besides the annual tax return forms, there are also provisional tax return forms for the current year. If you use these forms, you do not have to wait for a final settlement by your declaration at the end of the year. It is also possible to receive or pay money on a monthly basis.
All employees are entitled to the so-called general tax credit (Algemene heffingskorting). This is a credit on your taxation through your employer. It is possible to receive tax credit for your non-working partner as well under this general tax credit. The general tax credit is applied through the provisional tax return form, which is available on the Tax Administration website.
For the annual tax return form, the deadline is April 1st.
People who have migrated to the Netherlands during the previous year will receive a so-called M form. This form is not available online and will be sent to your home address. You can also order this form by calling with the tax service, phone number +31 (0) 555 385 385. Keep your BSN number ready.
After the first annual tax return via the M form, the following year you can apply for the tax returns online. The tax authorities will fill in most of the standard details and other information they collected like your income, savings and mortgage. Using the online tool can only be done with a DigiD, which you should apply for before starting the application of the tax return.
Although the tax administration tries to makes things as easy as possible for you, a basic understanding of the system is still necessary. Because you have been recruited from abroad and your personal circumstances may differ a bit from ordinary Dutch people’s circumstances, we advise you to get assistance from a tax advisor with knowledge of international tax issues, like one of the partners of the Expat Center East Netherlands.
For more information, please contact our service partners on taxation, Elfrink ten Bokum Financial Advise.
Every year the Expat Center organises an Taxation information evening in cooperation with our Taxation partner. Practical information is given on filing your income tax for the first time, 30% ruling and other topics. This information evening is usually in February or March and announcements will be made on this website, social media and per invitation.