In 2024, the 2025 Tax Plan confirmed further adjustments to the 30%-ruling. From 2027, the maximum tax-free allowance under the 30%-ruling will be 27% instead of 30%.
Additionally, the option for partial non-domestic tax status is no longer from 1 January 2025. However, for employees who were already eligible for the 30%-ruling at the end of 2023, a transitional arrangement applies: they may still opt for partial non-domestic taxation until the end of 2026.
As in previous years, the 30%-ruling remains capped at a certain income level, known as the WNT norm (also referred to as the Balkenende norm). For 2025, this cap is set at €246,000 on an annual basis, and it will increase to €262,000 in 2026. A transitional arrangement applies for incoming employees for whom the 30%-ruling was applied in the last pay period (December) of 2022; for these employees, the income cap will only take effect from 1 January 2026.
Unfortunately, the M form is susceptible to a wide variety of possible mistakes. There are several reasons why these mistakes are made, not taking into account the many questions that need to be answered, often by expats who have only just moved to the Netherlands and need to file their M-form.
1. M form not automatically received
Often, expats who move to the Netherlands don’t automatically receive an M-form. It is often unknown to expats that they need to file the migration form, so it is not uncommon that the P-form (for regular resident taxation) is filed instead of the M form, or no form is filed at all. If you aren’t sure whether to submit the migration form, then please contact us.
2. Refund potential
If you moved to the Netherlands and were employed part of the year, your employer will have taxed you monthly as if you were employed for the whole year. Therefore, a refund resulting from the migration form is not uncommon, depending on your situation. Feel free to contact us and we will check the refund potential in your situation.
3. Language
The M form is only available in Dutch. This adds another level of difficulty to the already extensive and complicated tax return. With google translate, or with help of a friend, it is possible to file it yourself if you do not know the Dutch language. However, mistakes are easily made. Many expats try themselves and find out later that they made a mistake, and consequently the tax return needs to be corrected.
Nowadays, the M form can be submitted using the Mijn Belastingdienst website. However, when completing the tax return on Mijn Belastingdienst, the due amount or refund is not calculated. This means you could wait months before you know what the outcome of the tax return is. We file the tax return with our own software which directly calculates what you are entitled to, and therefore provides immediate clarity in regard to your tax liability.
5. Pre-filled information
The pre-filled information in the tax return often contains items that should not be declared in your tax return or does not contain items that should be declared. Therefore, it is very important to check whether you are filling your tax return correctly. Feel free to contact us if you are unsure.
Have you moved to The Netherlands in 2025? There are a few things to consider then, tax-wise. We can help you file your taxes and claim any deductions or benefits you are entitled to. But not only on the tax-side can a Dutch tax advisor help you.
A Dutch tax advisor can also help you understand the Dutch culture and language better and make your transition to the Netherlands smoother and easier. Hiring a Dutch tax advisor can save you time, money, and hassle in the long and short run. Our team has listed the most important tax-related questions and topics to consider for you.
1. M-form
Unlike the regular Dutch tax return for domestic tax situations, the deadline for the M-form is July 1st. The M-form is a tax return for migration situations. Several items in this form are declared and calculated on a pro-rata basis. The M-form is a complicated form and mistakes are often and easily made. Our specialists will be happy to file your 2025 M-form for you.
Hiring a tax advisor can prove to be very beneficial in the short and long term.
2. 30%-ruling
This brings us to the next point: the 30%-ruling. If you are eligible for this favourable ruling, this means your net wealth remains untaxed and consequently your bank accounts, other investments and property abroad do not need to be mentioned in the tax returns for the years in which the 30%-ruling is applicable. However, there is a list of specific requirements you will have to adhere to in order to apply for the 30%-ruling.
If you have an international living or job situation it might be worth letting us have a look at your situation. There are often things that can be improved. For example, if your income is from a Dutch employer, it could also be taxed elsewhere if you work abroad. The 183-day rule may be applicable if this is the case. This rule prevents double taxation deduction and is therefore something that could be worthwhile looking into.
4. Self employed or business in the Netherlands?
Have you thought about getting help with payroll taxes, Dutch VAT returns, and the like? It can be a tiresome and lonely affair, trying to file Dutch corporate taxes and VAT returns. Not to mention keeping up with the bookkeeping. Or if you are starting a business in the Netherlands, it is essential to seek help from a Dutch tax advisor or accountant. We can assist and help you decide which business structure is the best for you. We can also help with the bookkeeping and with filing your taxes correctly and in a timely fashion.
Are you receiving a gift from abroad? A gift received from outside of the Netherlands might not be subject to Dutch tax regulations. In cases where the gift originates from someone who is neither a resident nor a Dutch citizen and has relocated from the Netherlands more than one year ago, there is no obligation to pay gift tax. However, when the money arrives in The Netherlands, it is important to be aware you may become liable for box 3 tax.
These are 5 reasons to look into hiring a Dutch tax advisor. This can prove to be very beneficial in the short and long term. We are happy to advise you in the best possible way. We will be glad to file your 2025 taxes. Click here for the rates, or call or drop us an e-mail to find out specifically how much we will charge in your situation.
Do you expect to pay tax for the tax year 2025? If you request a provisional assessment in good time, this will save you interest. The tax rate for income tax entrepreneurs is currently 6.5% and for Corporate Tax the rate is 9%.
Did you find out that you forgot to include some items in your VAT return? Then consider to submit a supplement declaration. You can do this for this year or for the past 5 years. If it concerns VAT to be received or remitted of € 1,000 or less, this may be included in the next VAT return without a correction for the previous period.
Do you drive a company car and do you use this car privately? In that case, a correction on reclaimed VAT must be made for private use in the last VAT return (to be submitted in January 2026). This may be based on actual use or on the basis of a fixed rate. Do you have questions about this? We are happy to help you.
If, as a business owner, you have made sufficient investments to qualify for the small-scale investment deduction, but have not yet paid all investments, we advise you to make these payments before the end of the year so that you are eligible for the small-scale investment deduction. You are eligible for the small-scale investment deduction when the total investment is higher than € 2,900.–.
Has your partner worked in your business this year but has not received compensation yet? Then consider paying compensation before the end of the year. This is deductible in your business. For your partner, this reimbursement is taxable in box 1. The rate depends on your partner’s total Box 1 income and is especially advantageous if your partner has a low income.
If you own a private company (BV) and make donations to charitable causes, consider making these donations from the BV. Since the personal deduction for gifts is limited to the lowest tax bracket, making the donation through the BV may be more advantageous. There is a maximum of €100,000 and a limit of 50% of the profit; no threshold applies.
Small business VAT exemption
Do you expect your annual turnover to remain below € 20.000 in the coming years? Then it is possible to apply for the small business VAT exemption (KOR), meaning no VAT needs to be charged on sales invoices. Entrepreneurs who apply for the KOR are exempt from VAT and have fewer administrative obligations. For instance, they usually do not have to file a VAT return. However, the KOR can also be disadvantageous, as for instance, entrepreneurs with the KOR cannot deduct VAT on expenses.
If you have turnover taxable in another EU country for VAT, you may be able to qualify for a similar VAT exemption arrangement in that country. The regulations have been changed as per 1-1-2025 in order to unify the schemes in various countries. An important condition is that the EU-wide annual turnover must remain below the € 100.000 limit. For more information about the regulations, please contact our office.
Tax free scheme
We would like to make you aware of the possibility under the Dutch Wages Tax Act to make a payment on a tax free basis for certain reimbursements which normally would be regarded as taxable income. This year this tax free scheme (‘vrije ruimte’) is maximised at 2% of the total company wages up to € 400.000,– and 1,18% beyond that. If you have not paid any other reimbursements or benefit of any kind to employees including directors which could be regarded as taxable wage, you could still make use of this scheme by paying out a tax free bonus as long as this is usual. A maximum amount of € 2.400 would be regarded as usual.
Tax free-allowances employees
The tax-free travel allowance of € 0,23 remains the same in 2026. Because many people have been working from home since the covid crisis (and this indirectly costs the employee money; more energy consumption, coffee consumption, etc.), a tax-free working from home allowance was introduced. As a result, employers can reimburse a maximum of € 2,40 per day in or part of a day worked in 2025 (€ 2,45 in 2026). The two allowances cannot be paid at the same time; per day you can either opt for payment of the work from home allowance, or payment of the travel allowance.
An employer can provide a tax-free allowance for setting up a home workplace. The employer can reimburse the costs for, for example, an office chair or computer screen via other specific exemptions from the work-related costs scheme.
Tax free scheme
We would like to make you aware of the possibility under the Dutch Wages Tax Act to make a payment on a tax free basis for certain reimbursements which normally would be regarded as taxable income. This year this tax free scheme (‘vrije ruimte’) is maximised at 2% of the total company wages up to € 400.000,– and 1,18% beyond that. If you have not paid any other reimbursements or benefit of any kind to employees including directors which could be regarded as taxable wage, you could still make use of this scheme by paying out a tax free bonus as long as this is usual. A maximum amount of € 2.400 would be regarded as usual.
Changes for sole proprietorship /partnership
The self-employed deduction has been phasing out since 2020. From 2023, this is happening in an accelerated fashion. The plan is to gradually reduce the self-employed deduction by € 1.280 a year, to € 900 in 2027. In 2025, the maximum self-employed deduction was € 2.470, in 2026 this will be € 1.200. In 2026 the SME profit exemption will remain unchanged at 12,7%.
Restriction from borrowing from own company
The possibility to borrow from one’s own BV has been restricted as of 2023, with the taking effect of the Excessive Borrowing from Own Company Act (wet excessief lenen). If a shareholder borrows more than € 500.000 from his or her own BV, the excess will be taxed in box 2 (once). The reference date is 31 December. First home equity debts do not count towards the € 500.000 limit if they are covered by a notarial mortgage deed (a mortgage deed is not required for home equity debts existing as of 31 December 2022). In the case of high loans or overdrafts, it is important to anticipate this and consider repayments before the end of the year, or reserve money for the tax settlement. Specific rules also apply in partner situations. Is your debt to the BV higher than € 500.000? Contact our office to discuss the possibilities and consequences.
Tax interest
Since the introduction of the interest regime in 2013, there has been criticism regarding the disproportionate nature of the system. Taxpayers were charged higher interest, particularly when there was a long period between the tax year and the date of the assessment. At the same time, it was rare for interest to be paid on a refund.
In recent years, interest rates used by the Tax Office have increased substantially, up to 10% for corporate income tax, which has led to the system being perceived as excessive and unfair. Tax interest can accumulate significantly and is not always avoidable.
Many appeals against this system have now been designated as a collective appeal procedure. This allows taxpayers to join the ongoing appeal procedure via a single objection, without needing to take separate legal action for each individual case.
Please note: it remains essential to file an appeal within the assessment’s objection period in order to participate in the collective appeal procedure.
Beheer cookie toestemming
Wij gebruiken technologieën zoals cookies om informatie over uw apparaat op te slaan en/of te raadplegen. We doen dit met als doel om de beste ervaring te bieden en om gepersonaliseerde advertenties te tonen. Door in te stemmen met deze technologieën kunnen wij gegevens zoals surfgedrag of unieke ID's op deze site verwerken. Als u geen toestemming geeft of uw toestemming intrekt, kan dit een nadelige invloed hebben op bepaalde functies en mogelijkheden.
Functioneel
Always active
De technische opslag of toegang is strikt noodzakelijk voor het legitieme doel het gebruik mogelijk te maken van een specifieke dienst waarom de abonnee of gebruiker uitdrukkelijk heeft gevraagd, of met als enig doel de uitvoering van de transmissie van een communicatie over een elektronisch communicatienetwerk.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistieken
De technische opslag of toegang die uitsluitend voor statistische doeleinden wordt gebruikt.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
De technische opslag of toegang is nodig om gebruikersprofielen op te stellen voor het verzenden van reclame, of om de gebruiker op een site of over verschillende sites te volgen voor soortgelijke marketingdoeleinden.
