Living in the Netherlands but working abroad

Are you living in the Netherlands but working abroad? For many internationals, the corona crisis caused them to, or in some cases, gave them the opportunity to work remotely from abroad for their Dutch employer. For example, you could no longer return to the Netherlands after a visit abroad. Or this time of remote working gave you the opportunity to spend more time with your partner abroad and work from there. Or you went back to your home country to be closer to your family or just felt safer there.

Are you in a situation like this? Keep in mind that living in the Netherlands and working (from) abroad can have tax consequences. Your physical work location is very important from a tax point of view and determines where you have to pay income tax. In any case, it is important that you keep a close eye on how many days you work abroad in such a situation, including holidays. If people work abroad for more than 183 days, that country will also tax the income. The Netherlands should then grant double tax deductions in proportion to the days worked abroad.

Tax return consequences
If you were in the above situation or similar in 2020, please ensure that your 2020 tax return is filed correctly. Our specialized tax advisers can support you in this and ensure that you are not taxed twice or too little. The same counts for 2021. But in this caes you may still be in time to organize the situation in such a way that the tax consequences are minimal or the most favorable. By submitting your international work situation to us, you can make the best possible decisions.

Negative savings interest tips

Nowadays, more and more banks have a negative savings interest rate, already from € 100,000 on the savings account. So you no longer receive interest on your money in the savings account, but you have to pay a certain percentage on your savings for storing your money at the bank. There are several ways to avoid negative interest in savings:

1.  Opening additional accounts: with some banks you can have multiple accounts at 1 bank and the accounts are not added together. At other banks, the amounts on different accounts at 1 bank are added together. Spreading your savings over several accounts can be difficult because the banks no longer open a new account for you so easily;

2.  Investing: you can also invest your money; spreading it over many different investments is then advisable, as is engaging a good financial advisor. Depending on your desired risk level, your advisor can select and arrange the right investments for you;

3.  Provide an interest-free loan to your child: you deposit your money up to a maximum of € 100,000 in your child’s savings account. To conclude a written loan agreement in which you indicate that the loan is intended to prevent negative interest at the bank and that you can always reclaim the money immediately. Extra option: If you pay your child the amount of negative interest saved as a contribution, this is tax-free for your child. Record this ‘interest amount’ in the loan agreement;

4.  Loan to your own BV: do you still have room in the bank account(s) of your BV? Then lend your private assets to your BV. The condition is that you pay the BV more interest than the bank charges the BV. Your BV then makes a ‘profit’ and it is a matter of business conduct. You can deduct the interest paid by you to the BV in box 1 on the basis of the posting arrangement. In this case, too, you must record this in a loan agreement;

5.  Loan from your BV to you: Do you still have room in your private account, while your BV has to pay interest to the bank? Then borrow money from your BV. The BV must then pay interest to you instead of to the bank. This interest is deductible for your BV. You will then have a ‘debt’ with your BV, but you will receive tax-free interest, which is also deductible for your BV. Your bank balance in box 3 will increase, but so will your debt, so on balance (almost), nothing will be taxed;

6.  Establishing an OFGR or BV: if it concerns a significant amount of capital, setting up an OFGR or BV is also an option to avoid negative interest on savings and high box-3 levies. This is because this is based on the actual return instead of the box-3 tax, whereby an often unfavorable fictitious return is calculated. It might be though that there will be some changes, making an OFGR less favorable;

7.  If you already intend to make a gift to your child(ren), the negative savings interest may be a boost. You could then possibly make use of the tax-free gift up to 100.000 euros for parents to their children to assist them in buying their first home.

8. Storing your money in a foreign account with better interest conditions can also be beneficial. Provided that you do report this money to the tax authorities. Otherwise, there is tax evasion. What you should definitely not do is a so-called ‘Inventive Construction’ abroad to disguise your wealth; this is outright tax evasion and may be punishable by law. The tax authorities are very alert to this and have a special program ‘Hidden assets’. So do not be tempted by malicious advisers who want to persuade you to such illegal construction.

Do you own box 3 assets above € 100,000? We are happy to look at tax options with you to prevent you from paying negative interest on a savings account.

Have you not declared assets to the tax authorities recently or in the past? Have you teamed up with an advisor who has set up an inventive construction for you (as described above)? Do you want to make a clean sweep? We are happy to guide you based on our many years of experience.

Collective ruling box-3 mass objection procedures 2017 to 2020

The Tax and Customs Administration has published the collective decision in the massive objection procedures against the box-3 tax for 2017 to 2020. All 200,000 objections have been declared well-founded. This does not mean that the participants in the mass appeal procedures now know how much they will get back and when.

There is also nothing known about possible compensation for other taxpayers who have paid too much box-3 levy. According to the cabinet, a box-3 levy based on the actual return cannot come into effect until 2025. However, urgent legislation is currently being worked on, which should provide a solution for the intervening years.

The emergency legislation makes adjustments to the existing box-3 legislation. The cabinet undertakes to send a memorandum of direction for the recovery operation to the House of Representatives before 1 April 2022. The left-wing opposition parties have already announced a private member’s bill that is based on a progressive levy on assets minus debts with a tax-free allowance of € 100,000 per person. The owner-occupied home remains in box 1 and substantial interest shares in box 2. The rate increases from 1% to 500,000 to 5% above € 5 million in taxable capital.

Tax assessments and tax return 2021

The ruling of the Supreme Court also has consequences for 2021 and later years. No final assessments are currently sent to taxpayers with box-3 capital. An exception is only made if there is a threat of prescription or if there is an interest in the taxpayer. As soon as it is clear what the recovery will look like, these attacks will be reinstated. Taxpayers will be informed about this.

The Tax and Customs Administration asks taxpayers to pay the provisional tax assessment 2022, pending further decisions. They are also asked to simply submit the 2021 tax return, stating the box-3 capital. Taxpayers with box-3 capital will probably receive their 2021 assessment later than 1 July 2022, even if they submitted their 2021 tax return before 8 April.

Supreme Court judgement on box 3 levy

As you may have heard in the press, the Supreme Court ruled on 24 December 2021 that the box 3 tax based on a fictitious return on investment in 2017 and 2018 is disproportionately high and is therefore in violation of the European Convention for the Protection of Human Rights (ECHR). The Supreme Court ruled that a relatively heavy financial burden is attached to the choice not to go into risky investment of assets. Furthermore, the fixed asset mix introduced in 2017 has a discriminatory effect on those who have had bad luck with their investments and nevertheless are taxed relatively heavily. That is why the Supreme Court offers legal redress in the sense that for the years 2017 and 2018 the tax should be based only on the actual return on investment. After the negative court decisions for earlier years, this finally means a positive outcome for the tax payer with saving accounts and hardly any interest.

Decision in mass appeal procedure

At the beginning of February, the Tax Office published the collective decision in the mass appeal procedures against the box-3 tax for 2017 to 2020. All 200,000 appeals have been allowed. This does not yet mean that the participants in the mass appeal procedures now know how much they will get back and when. Neither is anything known about possible compensation for other taxpayers who did not appeal against the box-3 levy. The cabinet has promised to provide a substantive response no later than 1 May 2022 on how restoration of rights can be offered over the past few years. For most situations involving a substantial box 3 tax, we have already raised appeals over the past few years. Further action is only meaningful after we know more about the promised response from the Tax Authorities.

New box 3 levy

According to the cabinet, a box 3 levy based on the actual return on investment cannot come into effect until 2025. However, emergency legislation to adjust the box 3 levy is currently being worked on, which should provide a solution for the intervening years. This could include, for example, fictitious interest rates that are more in line with the actual returns and based on the actual composition of the assets. The cabinet is planning on sending a memorandum of direction for the recovery operation to the parliament before 1 April 2022.

Moreover, it is clear that a new system will certainly not lead to advantages for all taxpayers. Taxing actual returns can also mean taxing capital gains from securities and real estate, which have not been taxed as such until now. Besides, a number of parties state that the coverage for the measures should come from the same category of taxpayers.

Future assessments and tax returns

The ruling of the Supreme Court has consequences for 2021 and later years too. No final assessments are currently sent to taxpayers with box-3 capital. An exception will only be made if prescription is imminent or if there is an interest in the taxpayer. As soon as it is clear what the recovery will look like, these assessments will be issued. Taxpayers will be informed about this.

The Tax Office asks taxpayers to pay the provisional tax assessment 2022. They are also asked to simply submit the 2021 tax return, stating the box-3 capital as before. Possible compensation will be worked out later. Taxpayers with box-3 assets will probably receive their assessment for 2021 after 1 July 2022, even if they have submitted their 2021 tax return before 1 April.

Is your 30% ruling ending?

For many expats the 30% ruling may cease by the end of this year as the transition period for those originally with an 8 year duration is discontinued. It is important to check the situation and possibilities to minimise the tax consequences.

Is your 30% ruling ending? Do you have worldwide assets? Contact us now to see what your tax saving possibilities are.

30% ruling end

Prior to 2019, the 30% ruling period was 8 years. As of January 2019 the period was shortened to 5 years. A two-year transition period was implemented lasting until January 1st 2021. This means that:

  • For anyone granted the ruling between January 1st 2011 and January 1st 2013 the 8-years still count, ending between January 1st 2019 and January 1st 2021;
  • those granted the ruling between January 1st 2013 and January 1st 2016 will be able to receive the allowance until 31 December 2020, giving them up to an additional two years following the extension;
  • anyone granted the ruling after January 1st 2016 will be eligible for the 30% ruling benefit for 5 years

30% ruling is ending as of January 2021

This means that for many international workers their 30 % ruling is ending as of January 2021. If you are one of them, it is important to be well prepared for the consequences. Not only will your take-home salary become lower, but you will also need to start thinking about your wealth and what this will mean for your tax return.

Without the 30% ruling, you can no longer opt to be considered a partial non-domestic taxpayer. In other words, you will be treated as a full resident tax payer and you will need to state your worldwide assets in your Dutch tax return. It is important that you are well prepared for this change and seek tax advice.

“Take this example from an international from Greece who’s 30% ruling period will end January 1st 2021. From then on she will no longer be able to opt for non domestic taxpayer; that means she becomes taxable in the Netherlands for her worldwide assets. Since she has savings in Greece she will have to pay box-3 tax in the Netherlands. Our tax consultants can help her structure things in such a way to reduce her tax liability. One of the possibilities we would be looking at is to reduce her box 3 tax liability by using her savings to repay part of her Dutch morgage. Although in that case she would receive less mortgage relief it would als lead to reduction of payable mortgage interest. And she would have less savings and thus as a reduction in box 3 taxation.”

Tax on assets and foreign real estate

This year the threshold per individual is € 30,846 before the asset tax starts. Your assets of between €30,846 and € 103,643 are taxed at 0.54%; assets of between €103,643 and €1,036,418 will be taxed at 1.27%; and anything over that at 1.6%. Given these fixed amounts of tax are unrelated to the actual income your assets generate, the higher your income, the more tax efficient you are. But they are still amounts which have to be found and paid.

You also need to include foreign real estate in your tax return and request a deduction for double taxation. In most Dutch tax treaties, the taxation of real estate is always allocated to the country where the property is located.

Avoid a large fine

It is really important to be honest and fill in your tax form correctly. The Dutch tax office is particularly hot on foreign bank accounts, and you can be fined up to 300% of the unpaid tax if you forget to mention them.’

If you would like to find out more about maximising your tax efficiency and decreasing your risk of fines, please feel free to contact Suurmond Tax Consultants .

Update 30 percent ruling Netherlands 2015

The last time the 30 percent ruling in the Netherlands was thoroughly revised was in 2012. The main changes considered the maximum period of 8 years instead of 10 years. Also expats have to have lived further than 150 kilometers away from the Dutch border during more than 16 months before their employment in Holland to qualify for the 30 percent ruling. Besides these alterations there is the change in the criterion. Before it was called the specific knowledge criterion, now it is basically a salary criterion, indicating that employees from abroad that have specific knowledge earn more. An exeption is made for younger persons with a master degree and those that receive their PhD in the Netherlands.

The past years these changes have raised many questions, especially the 150 kilometer rule. Especially if someone has had to move more than 150 kilometers it can be confusing if the application is denied. The Tax authorities are strict in applying the rule, 1 kilometer can make the difference. It could also be that you have moved 280 kilometers from Cologne (Köln) to The Hague, but do not apply for the 30 percent ruling because Cologne is less then 150 kilometers from the Dutch border.

The fact that you have to have lived abroad for 16 months raises a lot of questions. What if you have worked in a different job before in which the 30% ruling applied? What if you were travelling and it is not sure where your center of life was? Answers to these questions are sometimes hard to find and qualified tax advice is required.

Salary criterion

With the salary criterion it is crucial that the qualifying salary of € 36.705,– or more (in 2015) is the taxable salary after the 30%-ruling has been applied.  Make sure your employer or payroll agency applies the 30%-ruling correctly. We offer second opinion advice when your apllication is denied or when you have doubts about the procedure being correct or not. You cab also contact us if you want to know more about the 16 month period that you have to have lived abroad, since this often raises a lot of questions.

In case of unemployment

Last but not least we want to highlight that, if unfortunately this situation occurs,  you need to make sure that you are not unemployed for longer than 3 months in between jobs. If you exceed this period you will loose your eligibility for the 30% ruling in the new job.

Tax return Netherlands: gain maximum tax benefit

Of course, you don’t want to miss out on any tax benefits in the Netherlands that you are entitled to. In that case, you need to file a tax return and make sure this is done correctly. You can file a tax return for 2021 (from March 2022), 2020, and previous years, till five years back. Take a step in the right direction and contact us to file your tax return. No complicated online forms to be filled in, but personal and proactive service. Our tax consultants are passionate about seeking ways to optimize your tax return in the Netherlands.

How do you know if you need to file a tax return?

Even if you have not received an invitation to submit a tax return in the Netherlands, it is important to have your tax situation checked by a specialized expat tax advisor. You can contact us to check if it would be worthwhile for you to file a tax return. We will ask you the right questions to get the full picture of your tax situation. This way we can check all your tax-saving possibilities and you won’t miss any tax refund opportunities while filing your Dutch tax return. If you have your tax return automatically done by your employer in the Netherlands or a firm hired by them you can also come to us for a second opinion.

When is the deadline?

We will be pleased to look after the preparation of your tax return. The deadline is May 1st, but we will request an extension till May 1st next year for submitting your tax return. since we receive many tax return requests during this period. We will process the tax returns in the order in which they are received as much as possible. Do you have a specific reason why the tax return must be filed quicker? We will take this into account when scheduling the tax return. Do you expect to have to pay a large amount of tax over 2021? We can then request a provisional assessment before 1 April 2022, so that the due interest can be limited.
If you include information about possible deductible expenses and other relevant
changes in your situation we can optimize your tax return as much as possible.

Why use a tax advisor?

Our advisors understand that you do not wish to pay more tax than necessary and aim for a maximum tax benefit in your situation. Equally important, we also want to make sure that you are fully compliant. Some tax obligations are easily overlooked since you may not be aware of your responsibilities and the impact of certain actions on your taxes. While paying less tax may seem nice short term, unpaid tax can lead to a high tax bill with fines – up to 300% –  and interest in the future. It is therefore important that you inform us as well as possible about your situation, questions, and challenges; you remain responsible for a correct declaration. With our long-term focus, we can advise you proactively as your situation changes. Filing your own tax return or even worse making use of a budget tax return service may seem profitable at first, but there is a good chance that you pay the bill for this later.

Tax return in the Netherlands: which deductions

J.C. Suurmond & zn. Tax consultants are experts in expat tax matters and will make sure the optimum tax status is applied for. We will check whether all tax deductions, credits and allowances, applicable to your situation, are made use of. Regular Dutch tax return deductions are for example:

  • mortgage interest deduction
  • educational costs (also of your children or partner),
  • charitable giving
  • alimony
  • non-compensated health costs

In a proactive way you will be advised of your personal tax saving possibilities, which will be processed in the income tax return. As we provide a complete tax return service, we will also check the tax assessments that follow and appeal if needed to make sure your tax affairs are settled correctly.

Which tax form should you file?

The regular tax form is a P-form. In immigration or emigration situations however, an  extensive M-form has to be submitted. This is a more extensive Dutch tax return form and has to be submitted on paper. In a situation where you only lived in the Netherlands very short or merely worked in the Netherlands, a C-form for non-domestic taxation may apply. The M-form and C-form often give opportunity for refunds. With help of our direct line to the inspectors at the tax inspectorate for expats in Heerlen, we can check what Dutch tax return needs to be submitted in your situation.
We also take care of other tax forms, for example the request for a provisional refund for mortgage relief, which results in a monthly refund instead of a lump sum after the end of the year.

Examples of tax return situations

After completing your last tax assessment yourself it appeared that you would receive a sizeable rebate, but you have recently received a letter stating you owed the tax office €5500. You are quite puzzled and want to have an expert look at it properly.

It is possible that the final assessment turns out different, in this case disadvantageous for you. If you have filed the tax return yourself you may have missed some tax deduction possibilities. You can send us a copy of the tax return that you filed as well as your December pay slip and finally the correspondence that you have now received from the tax office. We will check what happened and what we can do for you.

In 2021 you worked 6 months in a Rotterdam office and need to do the taxes for this time. You did not live in the Netherlands prior to this job.

If you were a single taxpayer the refund entitlement for 2021 may be just over € 4000. We will be glad to start the process to reclaim this amount. We will look after the communication with the tax office until the refund is in your bank account.

Moving to the Netherlands

Are you considering moving (back) to the Netherlands? Most likely you have several scenarios in mind and you are wondering what the tax impact and benefits of each scenario would be. We would be happy to support you with tax advice. If you have already moved, we can file your M-form correctly and tax-efficient.

How to optimize your tax situation

Especially if you own (a) house(s) and have assets, a business, or other interests abroad, moving to the Netherlands is something to be carefully prepared. Moving to the Netherlands can give you several Dutch tax refund opportunities. If you seek immigration tax advice in an early stage, you can often still optimize the situation tax-wise. For example, you can organize beforehand that you are entitled to the 30% ruling by setting up a BV or being hired by a Dutch company. This would mean that 30% of your salary is tax-free and you do not have to declare your worldwide assets in your Dutch tax return (for 5 years). Also, the timing of registration or buying a house is very important.

M form

For the year you migrated to or from the Netherlands, you will have to file an M form which gives you several extra refund opportunities. Make sure your entire situation is carefully considered by a tax advisor to prevent costly mistakes or missed refunds.

Moving to the Netherlands example situations

You are in need of a tax advisor. You and your family are planning to move to the Netherlands next year. You and your wife will both continue working remotely for your current employers. You now have a full-time indefinite contract with a fixed annual salary. You are wondering if there is a possibility to keep it that way or that you should become self-employed and invoice your employers for services each month.

Would your UK employer consider setting up an NL payroll? This could be very advantageous for you. If you have never lived in the Netherlands before you might also benefit from the 30% ruling that way. becoming self-employed is hardly an option because working from a sole trader company requires more than just one client.

You are an Italian and received a job offer as a contractor for a German company. They would give you the opportunity to work remotely. Since your girlfriend lives in the Netherlands you are considering relocating from Italy to the Netherlands and work remotely for the German company. You want to understand how this would work tax-wise.

If the job offer involves an NL payroll through which you are paid you will become taxable in NL but your tax exposure could be limited by making use of the 30% ruling. It is important to do things in the right order to qualify for this.

You are looking for an accountant to manage your situation. You are an independent worker currently resident in the UK and you would like to relocate to the Netherlands. You would like to have some tax advice before you move.

It is important to check out possibilities prior to moving. Have you lived in NL before? Would you have a company in the UK at the moment? What will your income look like when you move to NL? There may be a favorable way to set this up. We can advise as well as look after your specific tax needs and liaise with your UK advisor if needed.

You are a US citizen moving to the Netherlands. You are looking at options to keep working for your US employer from the Netherlands and want to know more about the 30% ruling and 183-day rule.

When immigrating and registering in NL you will become taxable for your worldwide income and wealth. The 183 day rule is only relevant if you are working more than 183 days in another country than NL and then NL will grant double taxation deduction. The 30% ruling can be applicable but you must have a Dutch employer. There is various ways to create a Dutch employer but your US employer will need to cooperate to make this work. If your US employer already has a fixed establishment in NL then we can simply add you to the NL payroll or set up an NL payroll.

Your wife has signed a contract for a job in The Hague and you will be moving to the Netherlands. You are currently living in Spain, from where you are working remotely for a US employer. You intend to keep working for this US company from the Netherlands and want to know what is possible tax-wise and how to prevent double taxation.

Upon immigration, you will become taxable for your worldwide income and wealth. I assume the Dutch employer of your wife will make sure the 30% ruling is requested. Is that correct? You will also become taxable for your US employment as you will physically work in NL. This should be structured via a Dutch employment situation. There is various ways of creating a Dutch employer but it will need the cooperation of your US employer. There should be no double taxation as you should only pay tax in NL and exemption should be applied in the US. The 30% ruling may also be applicable for yourself if you meet all criteria and this will not double be the best way forward. I will be glad to help with the practical working out.

Do you need expert tax advice to understand and optimize Dutch taxes?

When it comes to your tax affairs we understand that you are looking for a trusted tax advisor with a proactive, long term focus and personal service. Our experienced tax advisors can help you understand your tax situation and explore ways to optimize your taxes.  We are happy to support you with tax advice if you are in situations like these:

  • Moving (back) to the Netherlands;
  • Assets or property in the Netherlands and/ or abroad;
  • 30% ruling end;
  • Covid-19 impact on working and living situation;
  • Pension taxable elsewhere;
  • Emigration affecting your tax position;
  • Need to submit your NL tax returns (for several years);
  • Unexpected huge tax assessment;
  • Filing an M form after leaving the Netherlands;
  • Buying, selling or renting a (second) house.

How can we help you save money on taxes?

Each international tax situation is unique, amongst others depending on the country you live or generate income from. We are happy to help you optimize your Dutch tax situation by looking at tax saving possibilities in your specific situation or possible scenarios, and understanding how the possible tax treaty works in your situation. We provide tax services like:

  • Tax advice on the tax impact and benefits of several scenarios;
  • Minimizing Dutch tax on your income and assets;
  • Tax filing for several years without missing any tax refund opportunity;
  • Strategic plan for taxes both in the Netherlands and abroad;
  • Minimizing tax consequences in (un)expected international working and living situations;
  • Negotiations with the Dutch Tax office.

What’s it worth?

As qualified advisors we want to be fully aware of your situation to make maximum use of existing Dutch tax regulations and international tax treaties. From our experience we know that a budget cost tax return service may seem profitable at first, but there is a chance that something important is missed. Especially if your situation is more complex. We have claimed back € 50.000 on income tax for a US client with a complex international situation who used an online tax return service for several years and missed out on one important tax refund possibility.

How does it work?

If you have a tax question please send us an email or fill in the contact form with as much details as possible. One of our advisors will get back to you and indicate what is important in your situation, what we can do for you and what the hourly rates are. Our hourly rates range from € 175 to € 235 plus 21% VAT, depending on your situation.

Tax advice example situations

You need some advice to get an understanding of the potential options and tax implications of your situation. You are wondering if we are able to help you with the above scenarios so you get a full understanding of what your options are and what the most cost-effective scenario is. You have accepted a job at an international organization in The Netherlands and will have the corresponding Privileges & Immunities. Your wife works for a UK employer and wants to work from the Dutch office from her employer. The employer though has let her know that they want to retain her on a UK employment contract. Is it possible for her to move to The Netherlands and be resident here but still be employed on a UK employment contract?

If your wife moves to NL and works for the UK employer from NL the results in the obligation for the UK employer to set up a Dutch payroll as this is the only way to make sure the social security contributions (unemployment benefit and disablement insurance) are paid. This option would come with the benefit of the 30% ruling which becomes possible if your wife moves to fulfill a Dutch role. We can register the employer as a withholding agent and look after the employment contract, payroll set up, and monthly payslips and wages tax returns. It does involve some expense but it is then set up correctly which is a benefit both to your wife and to the employer. If the expense is an issue this could be taken off your wifes’ salary. This will be more than made up with the 30% tax-free component.

You and your family live in the Netherlands for 7 years now and own a house in Amstelveen. You are working on a Dutch payroll for your UK employer. You have been asked to relocate to Switzerland. You would like to understand tax implications in case you would relocate to Switzerland and your family stays in the Netherlands. You would be spending weekends in NL.

In the situation, you mention your center of life will remain in NL as this is where your family lives, where you own your home, etc. Consequently, you remain taxable for your worldwide income and assets. There is a treaty with Switzerland that intends to prevent double taxation but it is important to apply this correctly. For example, it is important whether you only work in Switzerland and if it is a Swiss payroll or not.

You and your wife and 3 children are currently living in South Africa. You are working for a local company there. You are originally from the Netherlands and all your family members have the Dutch nationality. You are planning to move back to NL and buy a property in the NL. You are considering two options and want to know the tax consequences of both options are: moving back with the whole family or you staying in South Africa and your wife and children moving to the NL. You have some property and assets abroad. To be able to make the final decision, you need to understand what are the possible Dutch Taxations based on your family situation in case you move back to NL.

Please note that upon immigration to the NL you will become taxable for your worldwide income and wealth here. If you remain physically working in South Africa and tax is paid locally double taxation deduction may be granted. Alternatively, you may consider splitting your tax status.

You and your wife and 3 children are currently living in South Africa. You are working for a local company there. You are originally from The Netherlands. You are planning to move back to NL and buy a property in the NL. You are considering two options and want to know the tax consequences of both options are: moving back with the whole family or you staying in South Africa and your wife and children moving to the NL. You have some property and assets abroad. To be able to make the final decision, you need to understand what the possible Dutch Taxations based on your family situation are in case you move back to NL.

Thank you for your email. We will be glad to help. Please note that upon immigration you will become taxable for your worldwide income and wealth in the Netherlands since your center of life will be in NL. If your family moves to NL and you remain physically working in South Africa and tax is paid locally double taxation deduction may be granted. Alternatively, we may consider splitting your tax status. We would be glad to check out what the possibilities are.

You have been offered a position with a Dutch company in Rotterdam. You currently live and work in the UK and the company does not require you to be present in the office to do your job. You are wondering if you can be a full-time employee of the Dutch company and work from Ireland and whether you need to file an Irish tax return or also a Dutch one in that case.

Many thanks for your email. We will be glad to help. Would the NL employer have a fixed establishment in the UK and be able to put you on an Irish payroll? You will need some advice in the UK on how to make sure income tax and social security are paid in the UK. In NL it would be important that no Dutch tax is withheld etc. Is this something the NL employer is offering?

You are working as an international in the Netherlands for 3 years now and are benefiting from the 30% ruling. Your partner is an Australian citizen and is working and living mainly in Australia. She does have a residence permit though and is registered at the same address as you are in Amsterdam. She spends the majority of her time in Australia which is her main residence. You would like to have some tax advice regarding some of the questions on the tax declaration form, e.g., declaration of assets abroad and tax implications in connection with my partner.

Could I suggest you send me a copy of your last tax return? I assume the 30% ruling is applicable for a further 2 years? Some important questions to get a clearer picture of your tax status are: Does your partner also work in NL? It does not seem she is a fiscal partner? No registered partnership, no children together, not living in a jointly owned property, etc. Does she have to be registered with the town hall? How many days per year is she physically in NL? These issues are important regarding your tax status.

M form Netherlands

Make sure your M form is filed correctly and tax-efficient. Mistakes are easily made and can unnecessarily cost you a lot of money. Our expert tax advisors are happy to help you save money, time, and worries.

How does it work and what does it cost?

Would you like to know more about the possibilities of having us complete your M form? Send us an email or fill in the contact form and describe your situation and questions. One of our advisers will then indicate by email what we can do for you, what the hourly rates are and how many hours we estimate we need in your situation. For the M form, we usually need 2 to 4 hours in standard situations.

Do you want to get a better picture of what we can do for you? Check the example situations.

Do you need to file the M-form?

Do you want to know if you should apply for the M form in your situation? The M form must be submitted for the year in which you enter or leave the Netherlands. In most cases you will automatically receive an M form from the tax authorities. If you do not automatically receive the M form, it can also be requested. Not sure whether to submit an M form; then let us review your migration situation. An M form can be requested and completed up to 5 years ago.

What can we do for you?

In a migration year there are often extra options for tax benefits. But these are easily missed. The M form has been expanded and a costly mistake is easily made. As experienced tax advisers, we take care of the M form for you, so that you can be sure that it has been filed correctly and tax-efficient. We look at your entire situation so that we do not miss any opportunities for tax benefits, but also do not overlook tax obligations. We do not offer assistance if you want to file the M form yourself.

What about the deadline?

In most cases, the deadline for the declaration is July 1. If you let us take care of your M-tax return, we usually request an extension. After completing the form, it will take a few months before you receive a provisional assessment. It can then take up to three years before you receive the final assessment. If you would like to outsource the completion of the M declaration to us or submit your situation to us first, please contact us.

Examples of M form situations in the Netherlands

You started working in August 2020 in Rotterdam. You did not receive a notification to file a tax return but wanted to file it anyway. At first, you wanted to file an M form but you did not understand dutch and were not sure. Since on the Belastingdienst website you saw that you could submit your tax return as well and that all my data was already filed, you submitted it this way. It was accepted and returned to you. However, your colleagues told you again that for the first year working in NL you need to submit the M form anyways. And that probably next year the Tax office will ask back what was returned to you now.

We assume that the assessment you received was provisional and that it could yet change. It could be that your refund was too high or not high enough. Please send us a copy of your submitted tax return as well as your immigration date, annual salary statement and December pay slip. We will then have a look and advise what should be done.

You are a Greek national that lived in the Netherlands from 2014 until 2020 working full time in a company with a fixed salary. You moved back to Greece on January 1st, 2020. In that year you did not receive any income in the Netherlands, but you did keep your apartment until July 2019 and then deregistered from the council in Amsterdam. You originally filed a regular tax return for 2020, but received an M-form from the tax authorities, notifying me that an M-form is the only tax return form they will accept in my case. What can our office do for you in this case?

It may be advantageous to correct the emigration date to the beginning of the year 2020. Would you please send us a copy of your 2019 tax return as well as a copy of the 2020 tax return that you submitted incorrectly? In this case, it is already important whether the property was already for sale since January 1st, 2020.

You are an Italian ex-pat living in the Netherlands. You moved to the Netherlands in 2018 for your studies and started working in the Netherlands in 2019. You have declared your tax returns from 2018 (till 2020) yourself but never filed an M-form. In your 2020 tax return, you deducted your study costs. Initially, you received tax back, but later the Tax office asked you to pay the received amount back to them. Their reason is that you never filed an M-form and never declared these study costs before. You want to know how to proceed.

In your situation indeed an M-form needs to be submitted for 2018,, appeal against the 2019 final assessment is needed, appeal against the 2020 final assessment, and consequently submitting the 2021 tax return. If you would like to proceed we will send you a list with information that we need.

You emigrated or immigrated together with your partner. You are tax partners. Is it sufficient if you process your partner’s data and income in the M declaration, or does your partner have to fill in an M form?

In the event of migration, it is necessary that both taxpayers submit an M form.

In the year in which you emigrated, you partly worked in the Netherlands as an employee and partly from your own company. You are wondering how to file your M form.

With your emigration, the sole proprietorship has also moved and should be deregistered. A sole proprietorship is not a separate entity. Annual accounts should be prepared for the Dutch period in the migration year and then the company should be deregistered. In a number of cases, a Dutch EMS can continue to exist.

You moved back to your home country last year for work. Your family remained in The Netherlands to finish school. You visited your family regularly. You have deregistered from The Netherlands and received an M form from the tax authorities with the request to complete it. Is this correct?

Since your family still lived in the Netherlands, your life center was still in the Netherlands. In that case, you remain taxable in the Netherlands. An exemption can then be requested for the days worked in England, as well as for the national insurance contributions. consequently, your deregistration and the M-form may not be correct.

You moved to live and work in The Netherlands in 2020. However, you did not register in the Netherlands until 2021. You subsequently received an M-ticket for 2021.

In your situation, a bill of exchange may need to be applied because you have in fact already emigrated in a previous year. In practice, however, exchanging a banknote at the tax authorities is often difficult.