Before an employer in the Netherlands pays the monthly salary to its employees, the income tax is already withheld, and paid to the Dutch tax office.

 

Once a year the employee has to 'declare income tax'. This declaration of income tax is a verification of the taxes paid in the past year.

 

The Dutch tax system allows for a variety of tax deductions of work related expenses. This declaration procedure is not only a verification of the income taxes paid in the last year. It is also a moment to organize different tax related issues.

Many international working in the Netherlands are eligible for (substantial) income tax deductions. Especially in the year that you migrate to our country or in a year that you are not employed during the entire 12 months of the year, considerable tax refunds may apply.

 

 

On top of these income tax deductions, there are a number of tax related allowances (benefits) that you may be eligible for, depending on your personal situation.

Examples of these allowances are

• Care allowance (partial compensation for the costs of health care insurance)
• Rent allowance
• Children's day care allowance

The website 'Expat Guide Holland' has compiled an overview of the tax related allowances as they apply in the Netherlands.

The deadline for declaring income tax and applying for the allowances over the year 2011 is March 31st 2012.
(A 12 months extension of that deadline can be applied for by a tax consultant).

If you declared before
Have you declared income tax before? In that case the Dutch tax office probably sends you a letter, asking you to declare your income tax over the past year.

These letters (the 'notorious blue envelopes') are normally being send late January / early February.

If you did NOT declare before
If you have not declared income tax before,you might not automatically get a declaration form.

However, it might still prove to be worth while doing so. All in all you have 5 years to request the Dutch tax office for an income tax refund.

Basically you have 2 options to declare your income tax:

1. Download the software from the website of the tax office and enter the required information yourself (or with the help of an experienced (Dutch speaking) colleague).

2. Seek the help of a specialized professional tax consultant agency

The software for declaring income tax can be downloaded from the website of the Dutch tax office, address: http://www.belastingdienst.nl/aangifte/.

After March 1st you can download a version of this software in which the Dutch tax office has already entered the information as they have it about you.

Please note that both the website and software speak only Dutch.

If you want to declare income tax for the first year that you came to the Netherlands, a different procedure applies: you need to fill out a so called 'M-form' (M for 'Migration').

The M-form is more detailed than the 'normal' income tax software. The M-form is not available as software. It is only available in a paper version.

To request for an M-form you can contact the Eindhoven desk of the Dutch tax office: PO Box 90056, 5600 PJ Eindhoven.

Also the tax consulting agencies mentioned below will be happy to assist you with the complicated procedures surrounding the M-form.

Two Eindhoven based tax consultant agencies are specialized in tax matters relating expats, and in cross-border tax issues. These two firms are 'Fidante Tax Consultants' and 'Tax Globalizers'.

It may prove more than worthwhile to make use of the services of one of these consultants. They know all the in's and out's of the Dutch tax system and the specific issues relating expats and knowledge migrants. And they may find ways to deduct expenses that you wouldn't think of yourself.

Both agencies can also inform you about the allowances, and help you check whether or not you are eligible for them.

Want a rough indication first?
If you are uncertain whether or not it is beneficial for you to work with one of the agencies: they work with a quick scan, or an online calculator to see if it's worth the effort, and/or with different forms of 'no cure-no pay'.

Please see their web sites for more details:

Fidante Tax Consultants	Tax Globalizers Buestone
Website Leaflets	Website Do a quick scan

Here is the address of the Eindhoven desk of the Dutch tax office:

Visiting address
Karel de Grotelaan 4
5616 CA Eindhoven
Open Monday through Friday from 08:00 tot 17:00 hours.

Mail address
Postbus 90056
5600 PJ Eindhoven