As soon as you are living in the Netherlands you will have to deal with the Dutch tax authorities and file a Dutch income tax return. What is the procedure? To make this clear we will answer some questions. Please note that the procedure is also applicable to expats!

How does the Dutch tax authorities get their information?
The Dutch tax authorities gets their information on several ways. First, the Dutch tax authorities gets their information from the town halls. After the expat arrives in the Netherlands most of the times he will have to register himself in the population register of the town halls (in Dutch: ‘Gemeentelijke Basisadministratie’). The Dutch tax authorities have access to these registrations.
The salary details will be provided to the Dutch tax authorities directly by your employer – under the condition that there is a Dutch payroll. Further, the Dutch tax authorities will receive your bank details from your bank.
To receive the other relevant information the Dutch tax authorities will send you a tax form in which they ask you to file a Dutch income tax return. To check their information they will ask you, amongst others, to report your salary details and bank details as well.
When will the Dutch tax authorities send the tax forms?
Each year in February the Dutch tax authorities will send you a tax form in which they ask you to file a Dutch income tax return. When immigrating or emigrating the tax forms will be sent later due to technical reasons.
In principle you will have to file your Dutch income tax return before April 1st. It is possible to request the Dutch tax authorities for a filing extension by writing. When you use a tax adviser to prepare and file your Dutch income tax return they will ask for the extension on your behalf. Consequently, it might be possible to file your Dutch income tax return after April 1st.
In case you file your Dutch income tax return before April 1st, the Dutch tax authorities will raise a preliminary tax assessment of preliminary tax refund before June 1st. If you file your Dutch income tax return after April 1st the Dutch tax authorities try to work on your Dutch income tax return within one year. However, they have up to three years to raise a final income tax assessment.
When do you have to file a Dutch income tax return?
It is mandatory to file a Dutch income tax return if you have received a tax form from the Dutch tax authorities.
It is possible that you do not receive a Dutch tax form but still you would like to file a Dutch income tax return. You will then have to ask the Dutch tax authorities to send you a tax form. Filing a Dutch income tax return might be beneficial in the year you arrived in the Netherlands or the year you have left the Netherlands. Reason for this is that based on the differences between the wage taxes and the income taxes, the wage tax withholding is higher than the income taxes due. By filing a Dutch income tax return you can retrieve the paid taxes back.
To ensure that you do not pay unnecessary amounts, practical advice and help from an expert in Dutch tax can be a smart option.
If you do not receive a tax form and you have to pay income taxes you are obliged to ask the tax authorities to send you a tax form as well.
How do you have to file your Dutch income tax return?
Although you receive a paper tax form it is mandatory to file your Dutch income tax return electronically. However, migration forms have to be filed on paper and can be send by regular mail.
Filing a Dutch income tax return for your not-working partner
If your partner does not work in the Netherlands he might be entitled to the general levy rebate. In order to receive the tax refund regarding the general levy rebate your partner has to file a Dutch income tax return as well.
Preliminary and/or final income tax assessment
After the Dutch tax authorities have received your Dutch income tax return, the tax authorities will most likely raise a preliminary tax assessment. The assessment is based on the information based in the Dutch income tax return – without checking the information. After raising the preliminary assessment the tax authorities will judge your Dutch income tax return and will raise a final income tax assessment.
In some cases the Dutch tax authorities will not raise a preliminary tax assessment and will raise a final tax assessment immediately. Please note that the Dutch tax authorities try to raise the final tax assessment within one year after they have received the income tax return. In this case you can request the tax authorities to raise a preliminary assessment.
The tax authorities, in general, will not raise a preliminary tax assessment in case of migration forms.
We advise you to review the preliminary and final tax assessment carefully!
Interest
If you have to pay taxes, you also have to pay interest on the taxes due. If you receive money form the tax authorities you will receive the interest.
Due to the interest percentages at this moment we advise you to pay outstanding amounts as soon as possible. A request to raise a preliminary assessment might reduce the interest.
What if you have filed your Dutch income tax too late?
If you have filed your Dutch income tax return too late, the tax authorities will give you a penalty. Before the tax authorities gives you a penalty you will receive a reminder. If you do not respond to the reminder you will receive an urgent request to file your Dutch income tax return. If you do not reply on their request you will receive a penalty. The penalty becomes higher every time you file your Dutch income tax return late. The maximum penalty – after several times late filing – is about EUR 5,000.
What if you do not file your Dutch income tax return and you are obliged to do so?
The Dutch authorities will give you a penalty. Please be informed, the penalty will be higher than in the case you filed your Dutch income tax return late.