Many taxpayers living abroad are required to submit an income statement to the Tax and Customs Administration in addition to their Dutch income tax return. If you wish to avoid delays in the processing of your return, it is best to arrange this statement as soon as possible.
90%-criterim
Since 2015, anyone who:
- does not live in the Netherlands;
- but whose income is subject to tax in the Netherlands;
tax credits, personal allowances and the tax-free allowance (Box 3) are only applied in the Netherlands where:
90% or more of global income in the Netherlands is subject to income tax.
A foreign taxpayer who meets this 90% criterion is also referred to as the qualifying foreign taxpayer.
Statement of income
How can you prove that you meet the 90% criterion? By submitting an income declaration. The form for this declaration is available in many languages. Tax partners, both of whom are qualifying foreign taxpayers, must each submit an income declaration.
You can download it form from the Tax and Customs Administration’s website. You then enter your income not taxed in the Netherlands on the form. You must ask the tax authorities in your country of residence to stamp and sign the certificate to confirm its validity. You must then post the form to the Dutch Tax and Customs Administration. The Tax and Customs Administration’s International Office in Heerlen processes the forms. You will find the address of this unit on the form.
Declaration
In addition to the income declaration form, you must, of course, submit an income tax return. This is usually a C form. If you emigrated or immigrated during the tax year, you must submit an M form.
The C-ticket must be purchased online, via MY TAX SERVICE, must be submitted. To do so, you will need a DigiD required, or a username and password.
Your application for a DigiD will only be approved if you are a Dutch national.
You can apply for a username and password using the form provided by the Tax and Customs Administration for this purpose form.
An M form cannot yet be submitted digitally. It has to be done the “old-fashioned” way, on paper.
At the same time
The Tax and Customs Administration would prefer to receive your tax return and your income statement (at around the same time). If this is not possible, you can still submit your tax return in the meantime. However, if the income statement is delayed for too long, the Tax and Customs Administration will process your tax return as that of a non-qualifying foreign taxpayer. The allowable deductions, tax credits and tax-free allowance will then not be included in your tax assessment. As a result, you will pay more Dutch income tax.
Taking the hassle out of things
VWGNijhof also assists people who live abroad but are liable for tax in the Netherlands. You must have your income statement approved by the tax authorities in your country of residence. We can, of course, prepare the statement for you and submit the approved statement to the Dutch Tax and Customs Administration.
There are many specific rules that apply to foreign taxpayers. Not all (types of) income are taxable in the Netherlands. You must declare income taxable in the Netherlands on your tax return. Income not taxable in the Netherlands must be declared on your income statement. Double taxation is prevented through the application of tax treaties (the new treaty with Germany came into force in 2016). If you live in a country with which the Netherlands has not concluded a tax treaty, the unilateral double taxation relief scheme may apply. Further rules determine in which country you are insured (and pay contributions) for social security.
If VWGNijhof is handling your Dutch tax return, you do not need a DidiD or a username and password. We submit your tax return using specialised tax return software (except for an M-form, which must be submitted on paper).