During this period you may or may not have received a blue envelop from the Dutch tax authorities. As of the 1st of March it is possible to submit your 2020 Dutch income tax to the Dutch tax office. It could be that you are entitled to any tax benefits while residing in the Netherlands. In that case you need to file a tax return. You can file an income tax return for 2020 and the previous years, up to 5 years going back.
The P-Form is the prescribed income tax return form for tax residents of the Netherlands. In this form you must provide detailed information about your worldwide income from work (labor & business) (socalled Box 1-income), substantial interests (Box 2- income) and savings and investments (box 3 – income). You can submit a P-Form if you reside in the Netherlands all year round, also if you opted for the limited non-resident statusbut under your 30% ruling. For entrepreneurs there is a more extensive version of the P-Form, the O-Form.
The M-Form is the so-called migration return, which needs to be filed if you immigrate to or emigrate from the Netherlands during the year. This form contains additional chapters for information about your income and assets in the period of the year that you were not (yet) a Dutch tax resident (anymore). In the case of emigration from the Netherlands, specific information must also be provided about certain categories of deferred income, such as accrued pension rights, annuities and accrued income from a substantial interests at the time you emigrated from the Netherlands. The latter information is used as the basis for the so-called protective assessment which serves to protect the Dutch tax claim on such deferred income (exit tax).
Finally, the C-Form is the prescribed tax return form for non-residents. The distinctive feature of the C-Form is that you only need to state certain categories of Dutch sources of income.
Self employment person
The self-employed person’s tax allowance will be reduced further. The government will compensate this, so that most self-employed people will still be better off next year (through the employment tax credit and the change in income tax rates). The government will reduce the self-employed person’s tax allowance at a faster rate and in bigger steps, on top of the measures already initiated last year. From next year, the allowance will be reduced annually, reaching €3,240 in 2036. The original aim was to reduce it to €5,000 in 2028. This will reduce the differences in the tax burden borne by employees and self-employed people.
Tax partners?
Married couples are tax partners, yet file tax returns as separate individuals. Unmarried couples living together at the same address will, under certain conditions, also be treated as tax partners. Although tax partners will be taxed separately, certain income components can be taxed more tax efficiently due to the possibility to divide non-personal income between them. The non-working tax partner of a working tax partner can, in principle, claim 20 percent of the general tax credit (maximum 2,711 Euros (EUR)). If the non-working tax partner was born before 1 January 1963, the full general tax credit can, in principle, be claimed.
Non-resident spouses are not considered tax partners and are therefore not allowed to divide their non-personal income between them. However, non-residents who are residents of an EU or EEA Member State, Switzerland, or one of the BES islands, may receive the same tax treatment as that of residents if they pay tax in the Netherlands on more than 90 percent of their worldwide income and can submit a personal income statement from the tax authorities of the state of residence. These qualifying non-residents will only be taxed on their Dutch income, and are, in principle, entitled to the same deductions and tax credits as resident taxpayers. Pro-rated deductions may be available to non-residents of one of the before mentioned countries/jurisdictions if certain conditions are met. One of the conditions is that more than 90 percent of their worldwide income is subject to tax in two or more countries/jurisdictions other than the state of residence.
