From 1 March 2024, we will be able to submit our 2023 income tax returns to the Tax and Customs Administration. What information is needed to complete the return?
The obvious answer to this question is: it depends. We will discuss a number of points below. In our article 2023 Income Tax Return You can read the key points to bear in mind when completing your tax return.
We store your details in our digital records. It is therefore most efficient for us to receive your details in digital form. However, if that is not convenient for you, we will of course be happy to convert your paper documents into digital format.
Pre-completed declaration (VIA)
A lot of the information is already included in the pre-filled tax return (VIA). If you have authorised us to do so, we can retrieve this information digitally from the tax authorities. However, it is, of course, a good idea to check that the details in the VIA are correct. That is why we would like you to provide us with all the relevant information.
Personal circumstances
Changes to your personal circumstances often affect your income tax return (and may also affect benefits and other income-related schemes). Please let us know if, in 2023, you got married, entered into a civil partnership, started living with a partner, had a child, etc.
Box 1 (work and home)
For most people, their income in Box 1 consists of wages/benefits and the value of their home. You will receive annual statements from your employer(s) or benefits agency(ies) regarding your wages and benefits. As regards your home, we need the WOZ value (but this can usually be found in the WOZ Valuation Service) and the annual statements for the mortgages you have taken out on the property. If you have bought and/or sold a property, we will need further information.
If you receive business profits (WUO) or income from other activities (ROW), it is best to contact us to discuss what information we require. This relates not only to your income, but also to your deductible expenses.
In 2023, the VIA will contain the data that the Tax and Customs Administration has received from platforms (see also our article Trade or hobby), as well as data taken from the UBD records (see also our article Amounts disbursed to third parties).
Box 2 (substantial interest)
This usually relates to income from one’s “own” private limited company(ies). The information required for Box 2 is usually set out in the private limited company’s annual accounts.
Box 3 (savings and investments)
For Box 3, the composition and value of your assets as at 1 January 2023 are important. However, in order to gain a complete picture of your tax position, we would also like to receive details of the composition and value of your assets as at 31 December 2023. In most cases, this information has already been compiled for you by financial institutions in your annual financial statements.
If your assets include property other than your own home, we will need to determine its value. For residential properties, this is the WOZ value. Other property is valued at its market value. In the case of let properties, the basic rent is relevant for determining the vacancy value ratio.
Deductions
Apart from the costs that may be deductible under the WUO and ROW schemes (see Box 1), the following are deductible: 1. expenditure on income support schemes and 2. personal allowances.
Expenditure on income support schemes his premiums/contributions towards annuities. The insurer or bank usually provides an annual statement showing how much in premiums or contributions was paid in 2023. The scope for deducting such premiums or contributions has been significantly expanded in 2023. You can read more about this in our article More room to save for old age.
Personal tax allowances These include: expenditure on maintenance obligations (maintenance payments), specific care costs, weekend expenses for people with disabilities, and tax-deductible donations. Each of these deductions is subject to its own conditions. The deduction must be supported by relevant supporting documents.
Deadline
Your income tax return must be received by the Tax and Customs Administration by 1 May 2024, but you can easily obtain an extension until 1 September 2024. If you have our firm prepare your return, we will apply for an extension under the BECON scheme. Your return must then be submitted to the Tax and Customs Administration by 30 April 2025 at the latest.
When requesting an extension, be aware of the catch: if you owe additional tax, the Tax and Customs Administration will charge tax interest at a rate of no less than 7.5% with effect from 1 July 2024. If you are entitled to a tax refund, you will (unfortunately) not receive any tax interest on it.