If the Tax Office issues you with a tax form or letter to request you to do so, this will have to be filed in any case.
If you do not receive a letter, but you have to pay additional tax on your income or assets, you are also obliged to file a tax return. Obviously if you are entitled to a refund, it is in your own interest to file one. For a regular domestic tax return the deadline is May 1st.
This year again we have heard of tax payers who received a letter from the Dutch tax authorities mentioning that they did not need to submit a tax return, although in their particular situation it would have been either mandatory to file a tax return, or they were entitled to a refund. Particularly the situation of someone living abroad owning Dutch real estate, we regularly see that no tax returns were issued or filed. As property is always taxable in the country where it is located, it is important that a tax return is filed, also in view of avoiding later corrections with penalties and interest. Furthermore the Tax Office in the main is not aware of your possible tax deductions. We therefore advise to have your refund possibilities checked.
The Tax Office has also mentioned that some details in the prefilled tax return may be incorrect, such as the life annuity premiums. It is always important to check the figures with the underlying documents. By the way, any electronic messages you receive from the Tax Office (Berichtenbox) are still also sent by regular mail.
For our clients, we request a continuous authorisation from the Tax Office instead of the annual authorizations.
This may of course be canceled at any time again. If you receive a letter with a code for this authorisation, please forward it to us so that we can activate this in the system if you are happy with this. This authorisation is required, among other things, to receive copies of tax assessments from the Tax Office in our software program. However, we would still like to receive copies of the paper assessments you receive so that these are checked timely and appeal can be made, if necessary. If you have not received an invitation to file a tax return but receive one later in the year, please inform us. For these tax returns, we will need to request a separate extension for submission.
If applicable, please also provide us with information about your crypto currencies for the tax return 2024
Crypto currencies are part of the assets and it is mandatory to declare this in Box 3. We need the value per 1-1-2024 and 31-12-2024. Even if you have not specified your crypto currency in previous years, it is wise to correct this on your own initiative. The same counts for any other undeclared foreign items. We can assist you in this too. The tax authorities have been authorized themselves to check what cryptocurrencies a taxpayer has. This is stated in a new EU directive on data exchange. If it is not possible to view the historic value of your crypto currencies, please ensure you take a screenshot of your portfolio on the 1st of January each year.
With the new tax interest rules, from July 1st 2025 the Tax Office will charge interest on tax debts for the 2024 tax return.
This interest amounts to 6,5% for the Income Tax and 9% for Corporate Income Tax. If you expect a high tax assessment and you want to avoid paying high interest, please contact us to request a provisional assessment. To prevent interest, the provisional assessments will have to be requested before April 1st.
If you own any cash money as per 1st of January 2024 that exceeds the threshold of € 653,– (€1.306,– for fiscal partners), it must be declared in box 3. For 2024, this is mentioned in asset category 1, which means it is taxed at the same rate as bank accounts.
As in the 2023 tax return, your assets are in principle subject to the fictitious box 3 levy in 2024.
Bank deposits are taxed at a low rate, while other assets are taxed at a higher rate. The assumed income is 1,44% on bank deposits and 6,04% on other assets. Additionally, debts are only taken into account with a negative return of 2,47%. The tax-free allowance is calculated at a weighted average rate. This fictitious return on your assets is then taxed at 36% in box 3.
On June 6, 2024, the Supreme Court ruled that the current fictitious taxation still violates the European Convention on Human Rights. As a result, the Tax Authorities are developing an option to tax your actual Box 3 return if it is lower than the fictitious income on your assets. The actual return also includes capital gains. Later this year, a form will be released, allowing taxpayers to report their actual return to the Tax Office if this is advantageous.
The Supreme Court has set the following calculation rules for determining actual return:
Direct returns (such as interest, dividends, and rental income) are taxed in the year they are received.
Capital gains on assets such as shares or real estate, whether realized or unrealized, are taxable. For an investment portfolio, an overview of all purchases and sales throughout the year is required to determine capital gains.
Losses, such as stock price declines or real estate devaluation, whether realized or unrealized, can be deducted from the actual return.
The WOZ value must be used for changes in real estate value.
Losses cannot be carried forward or offset against other years.
Expenses are not deductible, except for interest paid on debts.
There is no consideration for a tax-free allowance or income.
To benefit from taxation based on actual return, you as a taxpayer must demonstrate that your actual return is lower than the deemed return.
In many cases, however, a more favourable calculation will not be possible. If, for example, a large investment portfolio has had significant capital gain, or the WOZ value has substantially increased, taxation based on actual return will generally not be more beneficial. In such cases, it is not necessary to document all income in detail. Of course, we are available for consultation on this matter.
We use Secudoc to guarantee the safe transfer of larger files and documents.
If you want to send your files via Secudoc, please send us a request by email. You will then receive an email with a link that leads to the Secudoc upload page. After you upload your files, we can download your uploaded files only by using two-step verification. This provision is especially practical with a larger number of attachments or large files that cannot be sent in one e-mail.
Entrepreneurs can apply for the small business and/or starters deductions and research and development deduction.
To be considered for these deductions, you will have to work as an entrepreneur for at least 1.225 hours a year. In case you have a part time employment besides your own business, more hours need to be spent on your enterprise than the part time job. If it is not altogether clear that you make the required number of hours, then make sure you register the hours related to your business. The Tax Office may request an overview of the hours worked; a summary prepared after the end of the year is not accepted, as it is usually not sufficiently accurate.
The investment deductions, SME profit exemption as well as the depreciation facilities are also possible without the hours criterion. For the energy and environmental facilities, as well as the RDA (research and development) you have to make an application before the expense is made. For more information about thresholds, ceilings and criteria, please contact us.
The following deductions are available in the 2024 Income Tax return to reduce your taxable income:
mortgage interest of your first residence (owner-occupied home)
life annuity premiums (if deposited before 1st July 2024)
non-reimbursed health care expenses (including medical assistance, prescribed medication and travel expenses for hospital visits)
financial obligations to ex-spouse i.e. in the form of alimony
gifts or donations to recognized charities (refer to the ANBI list)
travel expenses for regular commuting by public transport
weekend expenses for taking care of disabled relatives
Please note that for some of the tax deductions a threshold or other conditions may apply. The expenses may therefore not be fully deductible. If you incurred expenses that may qualify, please do not hesitate to contact us.
The tax return period is back, and 1st of May deadline is prominently highlighted in the news. But is all the attention on this dreaded date actually justified? And what about the other date we hear about, the 1st of April?
Do You Need to File a Tax Return for 2024?
If you are required to file a tax return for 2024, you’ve likely already received a letter from the Dutch Tax Authorities (Belastingdienst) inviting you to file your return. The letter specifies the final submission date for your tax return, which depends on the type of tax form you need to complete. Additionally, you may have heard that you can avoid paying interest on your tax assessment by filing your return before the 1st of April. This interest is often referred to as a penalty or tax increase, raising alarms for many taxpayers.
Filing a Tax Return After the Deadline Is Possible
For all our clients, we request an extension until the 1st of May 2026. The tax authorities grant extensions to spread the workload throughout the year. As long as your return is submitted by this extended deadline, you will not be fined. We request extensions due to the high volume of returns and processing times, ensuring each tax return gets the attention it deserves.
The shift from the the 1st of April deadline to the 1st of May coincides with the VAT return filing period, creating a challenging workload peak for us as tax filing office, especially since the VAT return deadline is strict and non-negotiable.
No Need to Panic
If you are not yet a client of ours and your tax return has not been submitted by the 1st of May, you will receive a reminder from the Tax Office. Even after receiving this reminder, there’s no need to worry. No fine will be issued immediately. If you still haven’t filed after the reminder, you’ll receive a formal warning (aanmaning), providing you with additional time to submit. Only after this will a fine be imposed. If you have received a reminder, we can still request an extension for you—but not after receiving a formal warning.
What is important?
The key is to avoid tax interest (belastingrente). This interest is charged if the tax assessment is issued after the 1st of July and is set at 6,5% for income tax. It begins accruing from the 1st of July. To prevent this, file your tax return before the 1st of May.
To avoid rushing your tax return, it’s often wise to estimate your situation and request a provisional tax assessment, which can later be adjusted with the final tax assessment. This is particularly relevant if you expect to owe a substantial amount. For refunds, this interest does not apply (unfortunately, no interest is paid on refunds), and for small payable amounts, the financial impact is negligible.
Tax Return Deadline for M Forms: July 1
The 1st of May deadline only applies to the standard P form. If you were a resident of the Netherlands for all of 2024, you will need to file a P form. However, if you emigrated from or returned to the Netherlands during 2024, you’ll need to complete an M form, which has a deadline of the 1st of July.
In some cases, no tax form is issued at all. It is your responsibility to determine whether you owe taxes and request a form if needed. In years of immigration or emigration, refunds are not uncommon, making it worth your time to check this carefully. The M form is a critical filing that changes your tax obligations, so seeking professional advice is highly recommended.
Other Reasons to File Promptly
There are situations where it’s beneficial to file your return promptly, such as when you expect a significant tax payment or refund, or if you need to apply for a mortgage. In these cases, it’s wise to contact us early. We can prioritise your return or request a provisional tax assessment to avoid interest charges.
Conclusion
You will not incur a fine or penalty for filing your return after the deadline, provided extension has been granted. If extension is requested it is important to make a reasonable estimate of your due tax and if necessary, request a provisional assessment. Extension is always possible and easy to arrange unless a formal warning has been issued. A reminder will always precede a warning, so there’s no reason to panic as long as you respond to communications from the tax authorities.
With our expertise, you can rest assured that your tax return will be filed accurately and on time. If you’re not yet a client and want to ensure your (international) tax situation is optimised, we’re here to help.
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