Income Tax Netherlands

Income Tax Netherlands

Most people underestimate the complexity of an Income Tax Return (IT) and often get stuck during the preparation process. In order to prevent this from happening, it is wise to first consult a tax adviser or to have your Income Tax Return prepared by a certified tax adviser.

Income Tax is levied on natural persons. All the residents of the Netherlands are liable for Income Tax, but obviously a person is only liable for Income Tax if he/she earns an income. Residents of the Netherlands (domestic taxpayers) have to pay Income Tax on their income, wherever in the world they have earned it. If you are not a resident of the Netherlands (foreign taxpayers) and you earn income in the Netherlands, these Dutch revenues fall under the taxability for Income Tax purposes.

The Income Tax Act (Act IT) is based on the box scheme, where a separate taxable income is calculated in each of the boxes. There are three different boxes and the tax rates levied are different for each box. The Income Tax Act consists of the following three boxes:
Box 1: Taxable income from work and residence;
Box 2: Taxable income from significant interest;
Box 3: Taxable income from saving and investments.

Why do I have to pay Income Tax?
As a self-employed or private person, you have the obligation to declare your Income Tax (IT) to the Tax Authorities. Income Tax is a tax levied on the wages you are paid, the profits you make with your business or the revenues from shares, savings and/or investments.

In the Netherlands, taxes (including Income Tax) are levied in order to be able to pay for the goods and services that are of common use in the Netherlands, such as police forces, fire brigade and ambulance, but also, for instance, the maintenance of the motorways and roads. Tax revenues are also used to guarantee the financial stability in the Netherlands.

When do I have to submit an Income Tax Return?
If you receive a tax return form from the Tax Authorities for the submission of your Income Tax Return, you have the obligation to submit an Income Tax Return. If you fail to submit the tax return or fail to submit it in a timely manner, the Tax Authorities may impose a fine.

Why should I assign AAme Tax Advisers with the preparation of my tax return?
In many cases, the correct preparation of an Income Tax Return can be a difficult task and the complexity is completely dependent on your situation. In order to prevent getting stuck or submit an erroneous Income Tax Return, it is wise to use the services of a specialist. AAme Tax Advisers has these specialists and is happy to submit the tax returns (together with its clients).

AAme Tax Advisers highly values the relationship with its clients. Personal contact and trust are just as important for us as for you and we always strive for a long-term relationship with our clients.

If your tax return Income Tax is prepared by AAme Tax Advisers, you will (if applicable) receive appropriate advice in respect of the optimisation of your revenues. During the preparation of your Income Tax Return, we will verify, amongst others, whether or not you are eligible for allowances, such as the Healthcare Allowance or the Childcare Allowance and whether or not you are eligible for averaging.

Interested in AAme Tax Advisers services?

We are always happy to set up a noncommittal consultation or quotation. In order to provide you with a solid impression of our working method, we prefer having a personal conversation during which we can answer all of your questions. To arrange a meeting, please contact Lounella Tromp by phone or by email. If you wish, you can also use the contact form at the right-hand side of our website.