All you need to know about Dutch income taxes
In the Netherlands, the tax year is the same as the calendar year, and individuals are required to file an annual income tax return if they have received a notification letter from the Belastingdienst (Dutch Tax and Customs Administration).
Even if you did not receive a notification letter, you are still obligated to file a return if you owe taxes. Common examples of those who owe taxes without receiving a notification letter are freelancers or those with investment property in the Netherlands. The regular tax season is from January 1st to April 30th of the following year, and individuals who have migrated to or from the Netherlands have until July 1st to file their return.
A request for an extension until September 1st can be made by individual taxpayers, and certified tax consultants can request a further extension until May 1st of the second year after the tax year if necessary.
It's important to note that interest will be added to taxes if they are assessed after July 1st of the following year, but this can be avoided by submitting your tax return before April 1st. The Dutch income tax system is progressive, with two brackets: 37% for the lower bracket and 49.5% for the higher bracket, which applies to income above 70,000 euros. Social security premiums and wage taxes are also a part of the income tax system.
There are also tax deductions available for certain costs, such as mortgage interest and donations to charities. However, study costs are no longer deductible as of 2022. Expats may also be eligible for specific tax refunds related to social security premiums during their migration years.