This post is also available in: Nederlands (Dutch)
Now that the year 2017 has ended, it’s time to prepare for the Dutch personal income tax return 2017! Although the Dutch tax office has recently stretched the filing deadline in the Netherlands from April 1st 2018 till May 1st 2018 in the so called aangiftebrief 2017, it could be interesting to file your 2017 personal income tax return before April 1st 2018.
In case you have to pay additional personal income tax on your personal income tax return 2017 be aware of the accruing interest (‘belastingrente’) on the amount on tax due following the 2017 personal income tax return. The tax office may start calculating interest as of July 1st 2018 in case no personal income tax assessment over tax year 2017 has been imposed yet.
The tax authorities have three months to impose a personal income tax assessment 2017 after having taken receipt of a personal income tax return 2017. During this 3 months period they retain the right to charge interest on the tax amount due following the 2017 personal income tax return.
Since the interest rate is fixed at 4% on annual basis, this interest rate is well above any interest percentage you may expect to receive on a Dutch bank current account / savings account.
Additional personal income tax may be due e.g. in case of savings held above the applicable thresholds or other taxable income which was not yet taxed, e.g. by means of wage tax and/or a preliminary tax assessment.
Another possible reason to file your personal income tax return 2017 before April 1st 2018 is that the tax authorities ‘guarantee’ a reply (mostly by way of a personal income tax assessment 2017) before July 1st, 2018. This could be especially interesting in case of an expected tax refund, e.g. in the year of migration (immigration or emigration).
We can assist with the full process to file your personal income tax return. If needed we can arrange for a lengthy filing extension of your personal income tax return 2017, however be aware that the possible interest calculation will not be extended by the tax authorities.
Some brief additional information on the Netherlands Dutch personal income tax system can be found here.