If you work in the Netherlands and receive an income, you are required to pay Dutch taxes. No matter if you are a Dutch citizen or an expat with a work permit, you will need to pay your taxes for your income. If you work for an employer, then your income tax will likely already be taken from your monthly salary. However, in most cases, you still need to fill in the annual tax return form online (in Dutch: aangifte inkomstenbelasting). The Dutch tax authorities (in Dutch:Belastingdienst) will inform you by mail (In Dutch: Aangifte brief) if this is the case.
Here is a quick insight into Dutch taxes, where they come from, why you are paying them and how to go about them when working through Abroad Experience Recruitment.
Overview of the types of dutch taxes and why you need to pay them:
The IamExpat website link https://www.iamexpat.nl/expat-info/taxation/dutch-tax-system offers a good additional overview of all the different types of taxes.
Dutch taxes Information line
There is a general information line you can call in regard to all tax-related questions: 0800 0543 (if you call within the Netherlands).
When you call this number, but you don’t speak Dutch (yet), please ask the operator to transfer you to an English-speaking colleague.
Dutch Taxes returns
At the beginning of February each year, tax authorities (in Dutch: Belastingdienst) start sending invitations to submit your income tax return form. If you have not received a letter and are in doubt if you need to pay taxes, please call the information line, that is mentioned above. You fill in your income tax return form online by visiting www.belastingdienst.nl. Here you log in with your personal DigiD number. The tax income form should be filled in between March 1st and April 30th. Although you can request an extension, we strongly advise you to fill in the form in time, to avoid penalties.
How does the tax system work?
Payroll tax is withheld from your salary when you work in an employment situation. The income tax calculation looks something like this, see the example below:
Salary: EUR 100,000
Income tax due on salary: EUR 42,000
Less payroll tax of salary: EUR 42,000
Balance: EUR 0
In this case, if you were employed for the whole year, you would not need to pay additional income tax. You won’t receive a tax form from the authorities, nor would you be obliged to submit a tax return. However, you may be entitled to a tax refund due to any incurred tax-deductible expenses. Therefore it is recommended that you submit a form.
Important: You are legally obliged to request a form and file a tax return if you have received income that hasn’t been taxed.
Types of forms
P Form – Most common form for those in a regular employment situation and have resided in the Netherlands for the full year
M Form – For those who became a resident of the Netherlands sometime in the course of the year, and for those who used to live in the Netherlands but relocated within the same year.
C Form – For those who do not live in the Netherlands but have Dutch-sourced income
W Form – For self-employed residents
F Form – For relatives of a deceased person
Filing your taxes
Most people file their taxes through the Belastingdienst website. However, as the website is all in Dutch, it’s advised for those who don’t speak Dutch to contact a tax advisor or a Dutch acquaintance/partner/colleague who can offer support.
Important: The DigiD is an identity management platform that government agencies of the Netherlands can use to verify the identification of a Dutch resident. This is used for Tax and Customs Administration, Pension, and Dienst Uitvoering Onderwijs. It can take a few weeks to set this up, so whatever you do, do not leave this to the last minute. If you don’t have one already, request for it here.
After submitting your tax return, you will receive a preliminary assessment from the tax authorities. This assessment will take between 6 to 12 weeks after the return has been submitted. When it comes to M Forms, it can take up to 24 weeks before an assessment is made. Once the tax authorities have checked the return, you will receive the final assessment along with the payment or refund information.
Taxes while working through Abroad Experience Recruitment:
If you are working as an employee contracted through Abroad Experience, you will receive a yearly income statement from us at the end of January, which is related to the previous year’s salary and deductions. You need this form to fill out your tax return form.
If you have more questions regarding your taxes or questions about work-related topics, don’t hesitate to let us know. We are happy to hear from you about what topics you’d like to know more about.
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