Filing your income tax return in the Netherlands (2024)

What is income tax?

In the Netherlands, you pay income tax over your taxable earnings. This is called inkomstenbelasting. Taxable earnings are your earnings minus deductibles and fiscal schemes, such as costs made for your company or amortisations. If your legal structure is an eenmanszaak or vof, you file an income tax return. If your legal structure is a bv, nv, or other legal entity, you file a return for corporate income tax.

To find out what your legal structure is, check your KVK registration. Or check your VAT numbers: if you have both a VAT identification number and a VAT number, you have to file an income tax return. If you only have a VAT number, your business is a legal entity. It has to file a corporate tax return.

Do you have to file a Dutch income tax return?

You must file an income tax return, it is mandatory. You file your income tax return with the Dutch Tax Administration before 1 May of each year. You will receive the tax return letter in February in your mailbox, on Mijn Belastingdienst (in Dutch) and in the Message box on MijnOverheid.

Can you not file your income tax return before 1 May? It is possible to apply for an extension. Except if you live abroad. Then your tax return or request for postponement must be received by the Tax Administration before 1 July. Do you file your tax return after the applicable tax return date? Then you will pay interest (in Dutch) on the tax you have to pay.

If you have not received a tax return letter

Then you still have to file a tax return if you have to pay €49 or more in tax. You may even get a refund. For example, if you have deductible items. File a tax return if you receive € 16 or more. You do not have to file a tax return if you receive less than € 16, because amounts below € 16 are not paid by the tax administration.

You can check it by filling in a test declaration on Mijn Belastingdienst (only in Dutch). As long as you do not send the data, you will not file a declaration. After you have completed (but not yet send) your declaration, you will immediately see the result.

Filing income tax returns digitally

You have to file your income tax return digitally. You can find the form in the encrypted environment of the website, Mijn Belastingdienst (only in Dutch), from 1 March. You can file your tax return yourself, using tax return or financial administration software, or via a tax intermediary. Either way, you need a DigiD to verify your identity. If you live abroad, read here about applying for a DigiD.

Once you have your DigiD, you can go to the website of the Dutch tax authorities and download the electronic tax return program.

The Belastingdienst gives an overview of information you need when filing your tax return.

Check if you are an entrepreneur for income tax purposes

In the tax return, you will be asked whether you were an entrepreneur for income tax purposes in the past year. Are you not certain about this? Then do the OndernemersCheck (in Dutch) on belastingdienst.nl.

Sometimes you have to file a VAT return

Are you not an entrepreneur for income tax purposes? Then you can still be an entrepreneur for VAT (turnover tax). Read when you must file a VAT return.

Do you have income from other work?

Do you occasionally earn extra money? For example, because you give a guest lecture for a fee or sell things on the internet. But you are not an entrepreneur for income tax purposes? Then you have income from other work (inkomsten uit overig werk). You must usually report this income to the Tax Administration in your income tax return. Read more about income from other work and the exceptions (in Dutch).

How much income tax do you have to pay?

There is no easy answer to that, as it depends on several factors:

• your income
• your assets
• deductible costs
• outstanding debts

You can check how much income tax you will have to pay by completing the tax return. Based on the information you provide, you will see how much you will have to pay, or how much you can expect to receive, before you file the tax return.

What if you do not reside in the Netherlands?

• If you are registered with the Netherlands Chamber of Commerce KVK, either as a resident business or a business with a branch in the Netherlands, you will receive a declaration letter to file for income tax. In general, the rule is that if you receive income from the Netherlands, you are liable to pay income tax. Even if you do not reside in the Netherlands.
• If your business is not in the Netherlands, but you have employees working temporarily in the Netherlands, you are normally not liable for paying income tax in the Netherlands.
• If you are a self-employed professional working on an assignment in the Netherlands, you may have to file an income tax return, depending on several circ*mstances. Contact the Tax Administration to find out if you have to file or not.
• If you are a non-resident taxpayer, you are required to file a tax return in the Netherlands if:
  • you have received an invitation to file a return;
  • you have not received an invitation to file a tax return, but you earned income in or from the Netherlands over which you owe more than €48, or are entitled to €16 or more back from the Tax Administration.

Check Dutch income tax deductions and fiscal arrangements

You pay income tax over your taxable earnings. The Dutch Tax Administration divides these earnings into different brackets, or boxes. Read more about these boxes and the percentage of tax that is levied (in Dutch).

When filing your return, you may make use of several deductibles and fiscal arrangements. This will lower your profit and the amount of income tax you have to pay. The entrepreneur allowance (ondernemersaftrek), for example, consists of a number of such deductibles.

File your tax return on time and without errors

You can use the tax return check for entrepreneurs(OndernemersCheck, in Dutch) to prepare. Then you know which deductions are available and what you should pay attention to. You will complete your return even faster when you have everything at hand.

Head Start Tax Administration

Take advantage of the Tax Administration's Head Start service. Via a live chat with a tax adviser, you will get explanations about returns and other tax questions. And receive information on the tax issues you face as a starter.

After you have filed your tax return

If you file your tax return before 1 April, you will be notified by 1 July. If you file your return after 1 May, the Tax Administration will try to send you a notice within 3 months.