Filing your 2016 Dutch tax return the smart way
Are you an expat filing your Dutch tax return? Get a free tax review to optimise your tax refund as expats in the Netherlands are entitled to several tax benefits. [Contributed by J.C. Suurmond]
Another year has passed and the time has come to take a fresh look at your taxes in the Netherlands. Many people are submitting their Dutch tax returns and speaking about refunds or due assessments they are expecting. No doubt it can be a stressful time of the year — a little or big mistake can be made very easily.
Filing a Dutch tax return for 2016
There have been a few changes to Dutch tax regulations in the past year, with some that could have consequences for your 2016 tax return. It's important, therefore, to contact a tax consultant to make sure no refund opportunities are missed.
Many expats are a little puzzled on how to proceed when they receive a request from the Dutch tax authorities to submit a tax return. Submitting a tax return in a new or foreign country is not very straightforward — although many advisors specialised in expat tax advice should be able to help out.
The trouble is that many expats do not receive a request from the tax authorities to submit a Dutch tax return. A first reaction could be, "What a relief! I don't have to submit a tax return!" This could, however, turn out to be a very short-sighted reaction, often because expats often have more tax refund possibilities than normal Dutch tax payers. This is the case both when the 30 percent ruling applies and when it does not. So, even if you have not received the mentioned invitation, it is important to have an expert calculate your taxes in the Netherlands to ensure no refund opportunities are missed.
It could also be that your employer takes care of your Dutch tax returns. Usually, your employer has hired a large accountancy office working for them. Perhaps you are satisfied with this often free service and relieved that you do not have to do it yourself — but there is also a chance that you feel unhappy about this situation. Many times, expats feel they get a 'one size fits all' service, believing that the accountancy company is only working in their employers’ interest and not theirs. It can be frustrating to think that you are entitled to Dutch tax refunds that are not mentioned in your tax returns. It can be very worthwhile to get a second opinion at a tax advisor specialised in expat tax returns. This will give you security — and maybe even more tax benefits.
30 ruling: Netherlands’ expat tax rule
For those with a gross contract, the 30 percent ruling will mean that 30 percent of your salary is tax free. In addition you can — upon request — be taxed as a non-resident for your box two and three income. This means that you are only taxable on your enterprise profits and labour income worldwide, and not on your capital income, property, or capital investments, such as a limited company. It is important that you are sure to have opted for partial non-resident taxation. A mistake is easily made!
For promovendi or PhD students, there are extended possibilities to secure the 30 percent ruling. It is again essential to get advice before you take any action to qualify for the 30 percent ruling. For example, it is essential to emigrate from abroad at the request of your new employer.
Tailored expat tax advice is specifically required in the more unlikely situations. J.C. Suurmond & Zn takes that extra step. Where other advisors say the 30 percent ruling does not apply or where the tax office has not granted the request, we have successfully obtained a positive decision in many situations. With extensive research on the effects of the 30 percent ruling undertaken in 2016 that may lead to reform of the rule, this is all the more important.
The following case study from of our office's experience illustrates this.
An expatriate from the UK who came to the Netherlands worked for a Dutch employer for five years. The 30 percent ruling was applied and he never received any tax forms to complete. This particular expat was quite happy with this, but as years went by, he preferred more certainty in relation to his tax situation. He feared receiving a high tax bill over several years, so he contacted our office. A tax consultant worked out the most advantageous scenario and submitted tax forms retroactively for five years. Instead of owing additional tax, he received refunds in excess of EUR 25,000!
This is not a situation of ‘too good to be true'. Similar cases occur regularly, showing the importance of having an expert annually check your Dutch tax situation, and more specifically, your refund opportunities.
Free tax review
To make sure you do not let a refund opportunity slip, as well as to introduce you to our range of services, we offer a free Dutch tax scan. An email with your annual salary statements to firstname.lastname@example.org with ‘Free tax scan' in the heading is enough to make use of this offer!
After checking your situation, a consultant will advise of the opportunities and provide a quote for submitting your tax return 2016.
No cure-no pay
Our services are available for competitive rates, and we can also work on a no cure-no pay basis in some situations. Please contact us for more information at email@example.com or have a look on our website www.suurmond-taxconsultants.com.
Established in 1986
J.C. Suurmond & zn. Tax consultants is a Dutch tax consultancy office, established in 1986. From the start, there has been an international perspective on our tax services, as a very large proportion of our clients have been expats. We do not claim to be the best tax advisors for expats in the Netherlands, but we certainly aim to!
Client and result focused
We focus on our clients' interests, so they can be assured of a proactive and personal service when they come for expat tax advice. This means that clients receive a better service for less money than they might receive at very large tax consultancy office.
No matter what tax situation you encounter as an expat, we know how to handle it in your best interest. Whether it is a tax return, 30 percent ruling request, tax advice in relation to emigration, or making use of the amnesty ruling, we take that extra step for you. Expats from all over the world have trusted our expertise for more than 30 years, and we have successfully made use of existing Dutch tax regulations to reduce their tax liability and secure large tax refunds. We always like to make sure our clients receive the maximum refund. Our clients can then concentrate on what they do best and rest assured that we will look after their interests. Our tagline: Untaxing taxes!
A satisfied client
"I am stunned! I needed some good news and this must be it! Thank you for your persistence in dragging the information out of me and your veracity in pursuing the Netherlands authorities. As you would expect, I am very grateful, as this is money I never thought I would see again." – Mr. B.M., Cambridge, UK
Trusted advisors since 1986: Untaxing taxes!
Contributed by J.C. Suurmond & zn. Tax consultants
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