2019 Dutch income tax return

1. Review if you are obliged to file a tax return

• If you receive an invitation from the tax office to file a tax return then this must be done before 1 May 2020. If you are a non-resident during (part of) the year the deadline is 1 July 2020. Once you have received all the necessary documents the tax return can be filed.
   
• If you receive an invitation after 1 May 2020 the deadline will normally end on the first day of the month after a whole month has passed. Brouweel can arrange an automatic time extension of 1 year.
   
• If you have not received an invitation from the Dutch tax authorities then it is still possible to file a tax return, for example, if you have income which is not taxed or taxed for the wrong amount or if you would like to apply for certain deductions (M-form).
  

2. I filed my tax return, what happens next?
If you submitted your personal income tax return with the Dutch tax authorities, you will receive a preliminary tax assessment. Once you where invited to file your tax return before 1 May 2020 and you filed before 1 April, you will receive a notice within 3 months. If your tax return was submitted with either a C or M form, it may take up to 6 months or more.

Thus, at first hand you will receive a preliminary tax assessment from the Dutch tax authorities which is based on your tax return and without being reviewed. Once they reviewed the filed tax return a final tax assessment will be received.

3. 30% ruling 
The 30% ruling is a tax advantage for highly skilled migrants working in the Netherlands. The ruling allows employer’s to grant a free (untaxed) reimbursement for the extraterritorial costs that you incur. Which means that the employee only pays tax over 70% of their gross Dutch salary.

Those who are eligible for this benefit can opt to be “partially liable to Dutch tax”. The term “partial” indicates that, even if the employee qualifies as a resident of the Netherlands, he is treated as a non-resident taxpayer for Box 2 and Box 3 income, but as a resident taxpayer for Box 1 income. Hence, he is eligible for all general and personal allowances in connection with Box 1, as well as for tax credits.

Once you met the conditions and requirements you will be granted the 30% ruling. If the 30% ruling is granted after 1 January 2019 your grant is only valid for 5 years. 

4. Taxation on real estate within and outside the Netherlands
In case real estate does not qualify (or no longer qualifies) as a main residence, the real estate and the related mortgage loan are being taxed in box 3 rather than in box 1. The mortgage interest paid for this type of real estate is not tax deductible. However, under conditions, certain exceptions may apply, for example when the real estate is for sale or for rent.

Brouweel is an expertised tax boutique who assists with the tax filing. During a call or e-mail we will ask you relevant questions to get to know you. Based on your personal situation, we will find the correct tax break that applies to you.If you have any questions please do not hesitate to contact us. We are happy to assist you within this matter! You can email us at info@brouweel.nl