How much do you need to make to owe taxes

You are required to file a tax return in order to pay tax or receive a refund if you have paid too much tax. Usually, the Tax and Customs Administration will notify you in the form of a provisional assessment.

Filing a tax return
Declaring foreign income and assets

Filing a return, even without a provisional assessment

Even if the Tax and Customs Administration has not sent you a provisional assessment you may still be required to file a tax return. To determine whether you need to pay tax or are entitled to a refund and if so, how much, you can use the Tax and Customs Administration’s income tax return program.

If you live outside the Netherlands, you can use the ‘Tax return program for non-resident taxpayers’. If you do not wish to file a digital tax return, or if you are unable to, you should request a C form. If you only lived in the Netherlands for part of the year, you should use an M form.

Paying income tax if you live outside the Netherlands

The Tax and Customs Administration will inform you when and how to file a tax return.
You are required to pay tax in the Netherlands if:

you have received an invitation to file a return, or
you have received a C Form, or
you have received income from the Netherlands over which you have paid an insufficient amount of tax or no tax at all. The amount of tax payable is at least €45.

If you think you have paid too much tax, you can request a tax refund, by filing a tax return.

Avoiding double taxation

Do you live in the Netherlands and have income, capital or assets abroad? Or do you live abroad and have income, capital or assets in the Netherlands? In that case international agreements determine which country may impose taxes on what income. This prevents double taxation. The Netherlands has signed various tax treaties for this purpose.

More information about income tax

If you have any questions concerning income tax, please contact the Tax and Customs Administration.

Living or working outside the Netherlands

Featured

You filed the tax return for non-resident taxpayers

Deductions, tax-credits and living abroad

Income statement abroad

Applying for the 30% facility

You will then receive compensation for higher costs of living.

Quick link to

Income tax return

Provisional assessment

Worldwide income return

Emigration or immigration

Living and working in different countries

Benefits

News

Do you have income from abroad? Then please read the information under Living or working outside the Netherlands.

On this page:

In which country do I pay taxes?
Agreements with other countries
Deduction to avoid double taxation
You are a resident taxpayer: deduction is possible
You are a non-resident taxpayer: no deduction
Transfer arrangement (carry over rule)

In which country do I pay taxes?

If you live in the Netherlands, you must state your worldwide income in a Dutch tax return. Your worldwide income is your Dutch and non-Dutch income combined. You declare both incomes in the Netherlands, but this does not mean that you always have to pay income tax on both in the Netherlands.

Read more under I have income from 2 countries - do I pay tax in both countries?

Agreements with other countries

The Netherlands has tax treaties and arrangements with many countries. These treaties state which country may levy tax on certain income. However, if you have income from a country without a treaty with the Netherlands, you do not automatically have to pay income tax on this in the Netherlands. You will then be entitled to taxation relief.

Deduction to avoid double taxation

In order to prevent you from paying income tax on the same income in several countries, you can obtain tax relief in the Netherlands in order to avoid double taxation. You will see the amount of your deduction when you file your tax return.

Read more under I have income from 2 countries - do I pay tax on the same income in both countries?

Please note!

The double tax relief only applies to the income tax. Read more under Levying national insurance contributions.

You are a resident taxpayer: deduction is possible

You are a resident tax payer if you live in the Netherlands. If you have non-Dutch income, you may be eligible for tax relief in order to avoid double taxation.

You are a non-resident taxpayer: no deduction

Are you a non resident taxpayer, or a qualifying non-resident taxpayer? In that case, you cannot receive a double tax relief. In your tax return, only enter your income that is taxed in the Netherlands. For Dutch income on which you do not have to pay tax in the Netherlands, you can request exemption in your tax return.

Example

You live in Belgium and work for the same employer partly in the Netherlands and partly in Belgium. You will receive a total of €50,000 in salary on which your employer has paid payroll tax in the Netherlands. You have earned an amount of €20,000 with your work in Belgium. You then state your full wages of €50,000 in your income tax return. And you indicate in the appropriate section that the Netherlands may not levy €20,000 on an income.

Do you earn €5,000 in Belgium? And do you receive €45,000 for your work in the Netherlands? Then you are a qualifying non-resident taxpayer, because at least 90% of your worldwide income is taxed in the Netherlands (€45,000 / €50,000 x 100 = 90%). In that case, too, you state your full wages of €50,000 and subsequently request an exemption for €5,000.

Transfer arrangement (carry over rule)

If the tax relief in order to avoid double taxation is higher than the actual tax, then the ‘transfer arrangement’ or ‘carry over rule’ applies.

How does the transfer arrangement (carry over rule)work?

The double tax relief may not exceed the income tax in a box. If you state a deduction item in your tax return, but this deduction item does not give you a tax advantage, you can make use of the transfer arrangement.

You will receive a decision from us stating the amount of your foreign income that will be included in the calculation of the deduction in a subsequent year. You can have more than one decision: for example a decision for box 1, and a decision for box 3.

As soon as you file your tax return for 2018, we will automatically apply the transfer arrangement. You no longer need to apply for this scheme yourself. If you wish to apply for the transfer arrangement for an earlier year, you will still have to apply for it yourself. Send a letter to your tax office and indicate for which box(s) you want the transfer arrangement.

You can request the amount available for the transfer scheme in writing, in a letter to your tax office.

Example of how the transfer arrangement works in box 1

Calculation of the double tax relief in box 1: Your income consists of €27,226 income from earnings in Germany €4,536 in negative income from being a homeowner. Your taxable income from work and home (box 1) then amounts to €27,226 €4,536 = €22,690. You then have to pay € 944 in income tax.

For your income from earnings in Germany you owe tax in Germany and in the Netherlands to avoid double taxation you are entitled to a rebate. In this case the rebate to avoid double taxation would amount to €27,226/€22,690 x €944 = €1,133. But since you only have to pay €944 on your taxable income, the amount of the rebate will only be €944, as this is the maximum amount of the rebate.

In this example, the negative income from your owner-occupied home does not lead to a tax advantage. That is why this amount (€4,536) is reserved. Should you have income in box 1 in the future on which you have to pay income tax in the Netherlands, a double tax relief will still be given on the reserved amount and you will receive a tax refund. This is called the transfer arrangement or carry over rule.