Filing your American taxes while being a Dutch tax resident. DAFT is maybe what you think about tax. Daft for us is the Dutch American Friendship Treaty. A very pleasant treaty to have.
What is the Dutch American Friendship Treaty (DAFT)?
This is a very old friendship treaty for a better working relation between the two nations. We know the Daft especially for entrepreneurs that would like to become a resident in the Netherlands.
IND (immigration service) and DAFT
The IND offers US nationals to become a resident in the Netherlands, when they are self employed. The self employment is often done via a so called one man company, or ZZP company, or freelance company. A simple form of company to be incorporated via the Chamber of Commerce.
The moment the Chamber of Commerce has registered the ZZP company the entrepreneur needs to open a business bank account. Then at all times the balance in that business bank account needs to be at least EUR 4500.
In the registration procedure of the IND this company bank account is a factor. The IND requires a trusted person to confirm the amount in the bank. There are a limited number of persons. One of them is the registered tax advisor. That happens to be us. Hence we can assist you with that statement.
The IND more or less randomly checks if you still have the money in the business bank account. Important part of your residency in the Netherlands. Keep that in mind.
We will be pleased to assist you with this DAFT procedure and we also offer the other services that come with owning your own company.
Is there a point in filing the Dutch tax return if we also pay US tax?
That we do know and the answer is YES. Before you are able to file your US tax return, you need to have filed your Dutch tax return. The Dutch tax return is the basis on which the US tax return can be processed.
As we are aware of this fact and that you have a mid April deadline, we offer an early service. Early in the sense that the software that enables us to process your Dutch return is ready early February. Hence early February we can process your Dutch tax return. The moment you have provided us all we need, maximum of three working days it takes to turn around the income tax return.
Feel free to connect with us. Our 2024 rate is EUR 430 incl VAT including tax partner for a regular income tax return. An entrepreneurs income tax return is charged at EUR 590 excluding VAT including tax partner. Please connect with us via info@orangetax.nl
IamExpat webinar filing your American taxes
February 27 at 19.00 hours BNC tax and Tax is Exciting organize via the IamExpat platform a webinar about the US Dutch tax combination. Feel free to join us. We do appreciate that very much !
