If applicable please also provide us with information about your crypto currencies for the tax return 2023. Crypto currencies are part of the assets and it is mandatory to declare this in Box 3. We need the value per 1-1-2023 and 31-12-2023. 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 tax payer 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 2024 the Tax Office will charge interest on potential tax debts for the 2023 tax return. This interest amounts to 7,5% for the Income Tax and 10% 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.
If you own any cash money as per 1st of January 2023 that exceeds the threshold of € 596,–
(€1.196,– for fiscal partners), it must be declared in box 3. For 2023, this is mentioned in asset category 1, which means it is taxed at the same rate as bank accounts.
As previously communicated, from 2023 onwards the correction that was possible based on the rented status of a second property will be limited. Whereas until 2022, depending on the level of rent, the value could be reduced to maximally 45% of the WOZ-value, from 2023 onwards this will be a minimum of 73%. If you would like to know how this will work out in your situation, please contact our office.
These adjustments, together with the higher box 3 levy for real estate, mean that a house in box 3, whether rented out or not, will be taxed more heavily from 2023 onwards. It may therefore be advisable to request a higher provisional assessment. Do you have any questions about this? Contact our office and we will be happy to look at the options with you.
Also, it is proposed that the Box 3 tax will be adjusted again in 2027, based more on actual return on investment instead of fictitious return on your assets.
In the 2022 tax return it was still possible to choose between the new and the old system of box 3 levy. From 2023 onwards this choice is no longer possible which means the new levy is applicable. In this levy, bank accounts are taxed at a lower rate than other assets. The Tax Office assumes a fictitious return on the asset categories; for bank accounts this is 0,92% and for other assets this is 6,17%, and debts reduce this return with 2,46%. The tax-free threshold is calculated with a weighted average rate based on the breakdown of your assets into the different categories. Subsequently the net return is taxed at 32%.
There are still a number of uncertainties regarding the Box 3 levy, including the calculation of the double taxation in the case of foreign real estate. In addition, further court cases are ongoing regarding the consequences and practical effect of the Supreme Court ruling. We are closely monitoring developments and raising appeals where necessary.
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.
The following deductions are available in the 2023 Income Tax return to reduce your taxable income:
Deductions
- 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
With the changes to the box 3 system it is important to keep your home in The Netherlands outside of box 3 if possible. Under certain conditions it is possible to keep the property in box 1. For 2024, the rate in box 3 will be increased from 32% to 36%.
If you live in the Netherlands, it is reasonably straightforward: if you live in your house yourself, the property is taxed in box 1. But if you leave the Netherlands, what happens then? There are a number of options.
Sale
Many taxpayers think that they will have to sell their home if they leave the country. Of course, it is true that you will have less to worry about. You no longer have to spend money and time on maintenance, taxes and insurance.
Rental
If it is decided not to sell the house, renting it out is usually the next option. But currently this is not very favourable in view of the box 3 changes. Renting out your home has become less profitable due to the high box 3 rate. In addition, the favourable ‘leegwaarderatio’ has been considerably restricted which further reduces profitability of rental properties. This scheme allowed real estate to be declared at a lower value under certain conditions.
And the other option?
What many people do not realise is that there are often possibilities to keep the house in box 1, even after leaving The Netherlands. Even if the house is no longer your main residence. For example, as long as the house is empty and intended for sale, the house can be declared in box 1 until it is sold. However, this means the house cannot be rented out. However, you can still make use of mortgage interest deduction.
Furthermore, if you emigrate temporarily and keep the home for your own use, it can sometimes be kept in box 1. There are a number of conditions for this. For example, you must have owned the home for at least 1 year before moving out of the Netherlands. In addition, no one else may register themselves on the address (there are a number of exceptions to this). We would be happy to examine your situation to determine whether you are eligible for this scheme.
Have you moved to The Netherlands in 2023? 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: The 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 2023 M-form for you.
2:The 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.
3: Double taxation: optimising your tax position
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.
5. Gift from abroad
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 2023 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.
As the new year looms on the horizon, businesses everywhere are gearing up for a fresh start in 2024. For expats who’ve made the Netherlands their new home and are venturing into entrepreneurship, finding the right tax accountant is a critical decision. Wondering why you should hire a Dutch accountant for the job? Here are four compelling reasons.
Tip 1: Navigate Dutch Tax Laws with Ease
Complying with Dutch tax laws and regulations can be a challenge. But fear not, Suurmond Tax Consultants has got your back! We ensure your filings are not only correct but also submitted on time. We also spare you the difficulty of having to communicate in a foreign language. Of course not only the language can constitute a problem, but also having to work your way through the complicated Dutch tax system often is a hard job for a foreigner. It is easy to misinterpret the system. We will guide you through the Dutch tax system with pleasure!
Tip 2: Optimize Your Tax Strategy by a Dutch accountant
Who doesn’t want to save money? Our tax accountants help optimising your tax strategy, potentially helping you benefit from incentives like the 30% ruling. Are you thinking of starting a business in the Netherlands? Then you may be able to request the 30% ruling. This means 30% of your salary is tax free. (link naar paginaaa) If you are eligible, then the company and payroll will need to be set up before you start working. Read here how we can help you with setting up and keeping accounts.
Tip 3: Comprehensive Support and Guidance
Starting and keeping a business running involves a multitude of financial tasks – from bookkeeping and auditing to payroll management and annual reporting. A Dutch accountant does not only offer expertise but also moral support in managing these essential aspects. Moreover, they can guide you in financial planning, investments, pensions, insurance, and inheritance, ensuring you’re on the right financial track.
Tip 4: Simplify Your Life and Save Time
Life as an entrepreneur can be hard work, and you need all the convenience you can get. Opting for a Dutch tax accountant who communicates in English streamlines your interactions with the Dutch tax authorities. No more language barriers! Plus, it just makes life easier when you have a knowledgeable Dutch accountant at your side to navigate you through the Dutch tax system.
Suurmond TaxConsultants is all for helping you start 2024 on the right financial footing. And what better way is there with a trusted Dutch tax accountant who speaks your language and the language of saving money and simplifying your financial journey! Contact us now, before the end of the year to see how we can help you.