The start of a new year doesn’t only mean a lot of good intentions, but also the end of the fiscal year and time to think about filing your income tax return. Let’s go through the basic steps.
General
In the Netherlands, the fiscal year runs from January 1 to December 31. Around the first week of February the tax authorities start to send invitations to submit your income tax return. In general, the tax return has to be submitted by April 1. If you receive the tax form much later than February, a different submission date will be applicable. This date will be mentioned on the form. If you cannot meet the deadline, it is possible to request an extension.
Types of forms
The tax authorities issue different types of tax forms. The most common ones are:
P form most common tax form for those who are in a regular employment situation and have resided in the Netherlands the entire year.
E form a simplified P form that only mention the basics.
M form for those who arrived in the Netherlands during the year and became a resident or for those who were a resident and left the Netherlands during the year.
C form for those who have had income in the Netherlands but were not residing in the Netherlands.
W form for those who have self employed income
F form for relatives of a deceased person.
If you haven’t received an invitation to submit your return, you can request the tax authorities to issue one on your behalf. If you know you have to report income to the tax authorities that hasn’t been taxed yet, you are obliged to request a form. On the other hand, if you have had tax deductible expenses, you would probably like to submit your return to reclaim the tax.
After submission
After you have submitted your tax return you will receive a preliminary assessment from the tax authorities. In general, the preliminary assessment will follow 6 to 12 weeks after the return has been submitted. However, in case of an M form, it can take up to 24 weeks or even longer before the assessment will be imposed.
The preliminary assessment is based on the tax return, but the tax authorities have not yet checked the return. Once they have checked the return, a final assessment will follow.
How the system works
If you haven’t received an invitation, that doesn’t automatically mean you do not have to submit your return. If you work in an employment situation, payroll tax is withheld from your salary. The income tax calculation will be as follows.
Salary 100.000
Income tax due on salary 42.000
Less: payroll tax on salary 42.000
Balance 0
So, if you work in an employment situation the full year, you will most likely not have to pay any additional income tax. If you are in such a situation, you will probably not even receive an invitation from the tax authorities.
The preliminary assessment is based on the tax return, but the tax authorities have not yet checked the return. Once they have checked the return, a final assessment will follow.
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