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Dutch tax system

Everyone who lives in the Netherlands must pay taxes on the income. The income tax is paid to the tax authorities. Useful links:

Income boxes

There are 3 categories of income tax: box 1 (work and home, for example wages or profits from business activities and income from letting of the owner-occupied home), box 2 (substantial interest) and box 3 (savings and investments). The rates are different per box. The government can also change the rates every year.

There are a total of 4 "Belastingschijven", all of which are of a different level of income. The income that is obtained is not equal within a particular disk. First you have to look at what taxes can be claimed. From this follows the amount that will fall within the tax brackets. Tax will then eventually have to be paid over this amount. The tax must be paid every year.

Every year, the amounts and percentages within the tax brackets also change. For example, there have already been plans to tax heavier households even more heavily with a fifth one.

Explanation income tax

Income tax is a government tax that must be paid by everyone living in the Netherlands and receiving income. Usually one pays taxes during the year via a provisional assessment or via the employer. But even when one has no income, one has to deal with tax.

Aangifte doen (annual declaration)

In order to recover paid tax or to pay the tax due, you must file an annual declaration. Anyone living in the Netherlands must report income, even if they live abroad and receive income from the Netherlands, they may have to file a report. Often people will receive a message about this, if you do not receive a message, it is still possible to file a report. You can submit a declaration via the income tax declaration program via the tax authorities. When a letter has been received, the declaration must be received by the tax authorities before the final submission date. The latest submission date is stated on this letter, usually this is April 1st. If it is not possible to file a declaration before this date, postponement can be requested. You can request a digital or telephone delay. When a declaration is fully completed, it can be sent digitally via the declaration program, and a declaration form can be sent by post. If something needs to be supplemented or changed, one has to submit another declaration.

The tax authorities usually send a reminder to those who do not report on time. If a declaration is not subsequently filed, a reminder follows. In this reminder a final declaration date is mentioned, within this period no declaration is made, then you will receive a default penalty. If no declaration is made, the tax authorities will make an estimate of the income and receive a default penalty. Who intentionally does not make a declaration or an incorrect or incomplete declaration, can get an offense fine.

Tax assessement

After a declaration, a provisional assessment is received. This tax assessment shows how much tax is or will be refunded. This provisional assessment is based on the data entered in the declaration. It is also possible that a provisional assessment is made annually at the beginning of the year. With this you will receive a refund or tax is already paid.

If a provisional assessment is not correct, it can be changed by submitting a new declaration. When an amount has to be paid according to the tax assessment, it is important to pay or postpone payment.

After a provisional assessment you always receive a final assessment. This usually corresponds to the provisional assessment but there may be differences. It is also possible that the final assessment is received immediately after a declaration. When certain data from the own declaration deviate from the data that the tax authorities possess, they receive a letter stating that the tax authorities want to correct and why they want it, this is the corrective letter. When a declaration is incomplete, it may also be that a request is received to send information. When a declaration with new data and the details of the tax authorities is complete, the Tax Authorities can correct the declaration if necessary. Thereafter, a final assessment is received. When a declaration has been corrected but one does not agree with it, one can object to this assessment. Even if you have received a post-tax rebate that you do not agree with, you can object to this. Objection can be made by means of the online or written objection form on the website of the tax authorities.

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