Tax Talk

A series of short podcasts about tax in the Netherlands. In particular for internationals filing a first tax return may be complicated, with assets abroad, the 30% ruling, financial transactions between countries, Box 1, 2, 3, a spouse with a freelance income, .. you name it. Once we are a couple of months into the new year, tax season starts.
We are very happy that financial expert Steve ten Bokum of Expat-Service.nl in Eindhoven guides us.

Steve shares with us what the typical first reaction is of internationals and expats who file their tax report for the first time in the Netherlands. A new country, new rules, but also special situations for internationals. And there are a few things to check already before you sign an employement contract. For instance, whether participation in the 30% ruling is explicitly described.

The tax system in a new country can be quite complex and confusing. What about the Netherlands specifically? If the information available online is not entirely clear, there are a few options. You could hire an expert to assist you, or you could contact the tax authority’s helpline, known as “de belastingtelefoon”. However, some questions arise: Can you discuss your case anonymously? Will the advice you receive be in your best interest? And is the information provided on the phone legally binding? Jean-Paul Linnartz asks whether the role of “de belastingtelefoon” is to maximize tax revenue for the Dutch government.

If you call the Dutch Tax Office helpline, is the advice that you receive legally binding? Can you fully trust the answers provided? You can ask questions anonymously on the “belastingtelefoon” (tax helpline), or you can provide your personal details and social security number (BSN). However, the advice given over the phone is not legally binding.

Tax forms are pre-filled, often even your savings in bank accounts

Tax season is upon us, marked by the arrival of blue envelopes containing an invitation to file a tax return. When you log in to the website of the Dutch tax authority, belastingdienst.nl, you’ll find that many details have already been pre-filled, such as your income and bank account information. In the Netherlands, you’re required to pay taxes not only on your employment income, but also on any potential earnings from your assets. Unlike some countries, the Netherlands does not have a wealth tax per se. The actual interest and investment income you receive is not directly taxed. However, as part of the income tax system, a hypothetical or “fictitious” income is calculated based on the value of your portfolio, including bank accounts, shares, or even a second home. This imputed income is then taxed under the “box 3” system. Our expert guest, Steve Ten Bokum from Expat-service.nl, is here to explain this concept in more detail. Our podcast host, Jean-Paul Linnartz, is not afraid to dig deeper and find out how this system works in practice. Can you simply tick the boxes on your tax return, or do you need to account for assets beyond what the tax authority has already compiled for you?

Box 1 2 and 3

Box 1, 2 and 3 are not fancy gift wraps but these represent different categories of tax levels. For tax purposes, income is divided into three categories (known as boxes). income from work and home ownership (box 1); financial interests in a company: a so–called substantial interest (box 2); savings and investments (box 3)

Wealth Tax

More about the taxation of assets in Box 3. In this episode we address the ownership of a (second) house in an other country. For internationals that is not an uncommon situation.

Gift Tax

If you receive funds from overseas or send money to friends or family in another country, do you have to pay taxes in the Netherlands? Podcast host Jean-Paul Linnartz verifies if he understood correctly: the person sending the money is the one who has to pay taxes. But isn’t it the recipient who reports it in their tax filing? More explanation is provided in this video podcast, episode 6 recorded in Eindhoven.

30% ruling for internationals

30% ruling: Internationals can get a 30% tax reduction for a number of years when they come to the Netherlands. But there are restructions. What are the pit falls? Can a family member also get a tax reduction? How about students? Having a student job may jeopardize the chances of a 30 percent reduction during a professional employment later on. Apologies for the poor audio quality in Episode 5

Running your own business of being a free-lancer

Signing up with the “Kamer van Koophandel” is an easy step to start a business. Anyhow, KvK will share your details with the tax authorities but that does not immediately mean that you start paying taxes. The main implication for you tax return is that you must prepare a profit calculation.

Timeline: April 30

Be in time! April 30th is the deadline for submitting tax returns in the Netherlands. Steve Ten Bokum, a financial expert from Expat-service.nl, provides guidance on the crucial steps in the tax filing timeline. What should you do if you’re unable to gather all your tax information on time? For international residents and expats, the tax system can be complex. However, it becomes more straightforward once you’ve filed your first return. But in the year you move to the Netherlands, many aspects may be unfamiliar.