A frequently asked question, do I need to file an income tax return? That depends.
Do I need to file an income tax return? No:
If you are a regular employee for the full year, and you have no assets exceeding the threshold and or you have the 30% ruling, no need to file an income tax return, unless you are asked to file one.
If you are a regular employee for the full year and you have a tax partner who is also a regular employee for the full year, no need to file an income tax return, unless you are asked to file one.
Do I need to file an income tax return? Yes:
If you had more than two employers in one fiscal (= calendar) year, you will be asked to file a tax return.
If you know you need to pay tax, you are ought to know you are obliged to file a tax return before the general deadline. When do you know you need to pay tax? You know when you have been paid an amount without tax being withheld on the amount or the amount was paid next to the income from your employment. For instance royalty payment for a book, invention etc. You are paid a one off amount for a job you did. You receive payment from a foreign employer.
You are to file an income tax return if you had a company registered with the Chambers of Commerce in the fiscal year. Regardless if you made any income nor if you did any activity with the company. We do not know dormant companies, so yes you need to file the entrepreneurs income tax return.
You are to file an income tax return if your worldwide assets exceed the threshold.
Do I need to file an income tax return? Yes, it is in your advantage:
If you and your tax partner both work and you have a child younger than 12 years old, then the partner with the lowest income can have a tax credit, but only if you file the income tax return.
If you did a study in a year you had no income and you would like to set off these costs for a refund in later years, you can only do that if you filed an income tax return in the year of study costs being paid and you claimed for study costs in the income tax return.
If your tax partner has a Dutch taxable income and you do not simply because you do not work, then you can have a non-working spouse tax credit, but only if the income tax return is filed.
You are for instance a US national and you need your US tax return to be done, then the basis of that tax return is the Dutch income tax return, if you were a resident in the Netherlands at that time. Hence filing a tax return is to your benefit. If you need a very good US tax provider in the Netherlands, we know one.
Do I need to file an income tax return? I am nervous as I have never done one, will the tax office hunt me for it?
If you have read the above and you have the opinion you should not have been obliged to file an income tax return, then no worries, no income tax return was due. The system is such that the tax office does not want everybody to file an income tax return, only those tax payers who are required to file one.
However, if you read the above and you have the opinion you should have filed a tax return, you can still do that. Better to file one yourself than when the tax office finds out you should have filed a tax return. The difference is the value of the fine you get when the tax office asks you to file.
Orange Tax Services
We can file any tax return you like to have filed. The regular income tax return, non-resident income tax return and the migration income tax return are charged at EUR 390 incl VAT including possible tax partner. The entrepreneurs income tax return is charged at EUR 550 ex VAT including possible tax partner.
