Income Tax

Employers will (on your behalf) complete your monthly tax payments out of your salary; you can see the amounts paid for various taxes in your payslip. At the end of each year, you should also be able to access a year-end statement (jaaropgaaf), with further information on the taxes you have paid.

However, everyone in the Netherlands also needs to fill in and submit a yearly tax return to the Belastingdienst (tax office). The tax return is split into three major income streams: from employment, from assets, and from shareholdings. If you only have one stream of income (for example from a salaried job), the tax return form is a relatively quick and easy process. However, if you have multiple streams of income, or overseas income, it is a good idea to consult a tax advisor.

Aside from your first tax return, which requires the use of the ‘M form’, you can do all your tax returns online. Returns can be sent in from 1 March, and you have until 1 May to complete your yearly return. You can always request an extension from the Belastingdienst, which is typically granted until 1 September.

The M Form

Your first tax return in the Netherlands will require the use of the ‘M form’. This form can look a little daunting, but depending on the number of income streams you have, it is likely that you will only have to fill in a section of it.

There are plenty of instructional webinars available online about the ‘M form’, and various tax advisors offer special ‘M form’ packages. It is best to at least consult some online information about your first year’s tax return, as if you have worked only part of the year, you will likely receive a rebate!

Filing income taxes and where to get help

You can file your taxes digitally via the Belastingdienst website. For this program - which is only available in Dutch - you will need to apply for a DigiD first. The other option is to enlist the help of a tax accountant or adviser. Please keep in mind that if you do not already have a DigiD account, it can take a few weeks to arrange this, so do not leave it until the last minute.

If you have questions about your taxes, contact the Belastingdienst.

Savings outside of the Netherlands

If you reside in the Netherlands, you are required to report your worldwide income on your Dutch tax return. This includes both your Dutch and non-Dutch income. While you must declare both incomes in the Netherlands, it does not necessarily mean you will have to pay income tax on both.The Belastingdienst site provides more information on this.

You may be interested in our partners that are tax specialists. Alternatively, check out our information on banking and finance.