Dutch Taxes

Tax Information line

This is a quick insight to Dutch Taxes, where they come from, why your paying them, and how to go about them when working through Abroad Experience. The general information telephone number of the tax office only provides information in Dutch. You can contact them for all kinds of questions regarding tax matters and other subjects that you come across while living in the Netherlands. Their telephone number (from The Netherlands) is: 0800 0543

When you call this number, but you cannot not speak Dutch (yet), please ask the operator to transfer you to an English speaking colleague!

Additionally, this Dutch website could be useful; among other things, it will help you to calculate the net salary that you will receive from the gross salary you are earning.

Tax returns

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At the beginning of February tax authorities start sending invitations to submit your income tax return. The documents should be returned to the tax authorities between the 1st March and the 30th April. Should you receive tax forms later in February a different submission date will be applicable, submission dates are always mentioned on the form. Although you can request for an extension, if you cannot meet the deadline for the tax return. Tax authorities will impose a penalty for late filing, so be aware of the deadline.

How does the system work

Payroll tax is withheld from your salary from your salary when you work in an employment situation. The income tax calculation looks something like this:

Salary: EUR 100,000

Income tax due on salary: EUR 42,000

Less payroll tax of salary: EUR 42,000

Balance: EUR 0

In this case, if you were employed for the whole year, you would not need to pay additional income tax. You won’t receive a tax form from the authorities, nor would you be obliged to submit a tax return. However, you may be entitled to a tax refund due to any incurred tax deductible expenses. Therefore it is recommended that you submit a form.

Important: You are legally obliged to request a form and file a tax return if you have received income that hasn’t been taxed.

Types of forms

P Form – Most common form for those in regular employment situation and have resided in the Netherlands for the full year

M Form – For those who became a resident of the Netherlands sometime in the course of the year, and for those who used to live in the Netherlands but relocated within the same year.

C Form – For those who do not live in the Netherlands but have Dutch sourced income

W Form – For self employed residents

F Form – For relatives of a deceased person

Filling the taxes

Most people file their taxes through the Belastingdiesnt website. However, as the website is all in Dutch, it’s advised for those who don’t speak Dutch to enlist the help of a tax accountant or advisor, many of which specialize in expat and international tax issues.

Important: The DigiD is an identity management platform which government agencies of the Netherlands can use to verify the identification of a Dutch resident. This is used for Tax and Customs dutch taxes, paying tx, tax returnsAdministration, Pension, and Dienst Uitvoering Onderwijs. It can take a few weeks to set this up, so whatever you do, do not leave this to the last minute. If you don’t have one already, request for it here.

After Submission

After submitting your tax return, you will receive a preliminary assessment from the tax authorities. This assessment will take between 6 to 12 weeks after the return has been submitted. When it comes to M Forms, it can take up to 24 weeks before an assessment is made. Once the tax authorities have checked the return, you will receive the final assessment along with the payment or refund information.

Working through Abroad Experience

If you are working as an employee contracted through Abroad Experience, you will receive a yearly income statement from us at the end of January, which related to the previous year’s salary and deductions. You need this form to fill out your tax return.

 

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