Deadline personal income tax return 2019 & be aware of interest. Now that the year has ended, it’s time to prepare for the Dutch personal income tax return 2019! The filing deadline for the Dutch personal income tax return 2019 is May 1st 2020. Here you can find the tax rates for 2019.
In case you have to pay additional personal income tax on your personal income tax return 2019 be aware of the accruing interest (‘belastingrente’) on the amount on tax due following the 2019 personal income tax return. The tax office may start calculating interest in case your personal income tax return over tax year 2019 has been filed after May 1st 2020.
Since the interest rate as used by the tax office 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. Here you can find an explanation of the Dutch equity tax system.
Here you can find more information on the possibility to file tax returns retroactively going back for a maximum period of five years, be aware that tax deductions have to be made in the year the expenses were made. An example of a required retroactive filing is the deduction of study expenses in prior years, explained here.
Before filing a Dutch tax return, without having received an invitation from the Dutch tax office, it may be wise to check your Dutch tax residency status which is explained here.
Another possible reason to file your personal income tax return 2019 on time is that the tax authorities will reply (mostly by way of a personal income tax assessment 2019) more quickly. 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 2019, 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.