File for taxes​ in the Netherlands

When you register as a resident in the Netherlands and start to earn income, you must pay income tax over your taxable earnings. You pay tax in the Netherlands on your income, shares in a company and savings and investments.  In Dutch this is called “inkomstenbelasting”. The tax authorities collect income tax. Tax revenues are used to pay for roads, benefits and public goods. Taxable earnings are your earnings minus deductibles and fiscal schemes, such as costs made for your company or amortizations. In this blog we shall explain how the income tax system works in the Netherlands.

Fiscal year
The Dutch fiscal year runs from January 1st to December 31st. Every year you will receive a letter from the belastingdienst asking you to complete a tax return form for the previous year. You can also fill in your taxes online through the belastingdienst app. You need a Digid to be able to identify yourself. You must file your income tax return with the Dutch Tax and Customs Administration before May 1st of each year. This tax return is necessary to balance out your prepaid tax with other financial facets that you may have such as:

  • Your partner’s income (if applicable).
  • A mortgage
  • Additional income, savings or investments.
  • Tax deductions for things such as study programmes or healthcare

The Tax Administration uses the return to calculate your total tax costs. After a couple of months, you will receive a notification on whether you will have to pay tax or get a tax refund.

Types of tax that you pay as a nurse:

Income tax (inkomstenbelasting)
If you are employed by a company (as a nurse it will be a healthcare institution/clinic) then your income tax will be withheld from your salary by your employer, this is known as wage tax (which is included within payroll tax). If you are an independent contractor, then you have to calculate your income tax by yourself via the annual tax return sheet.
You declare your income tax via your annual tax return (aangifte inkomstenbelasting) which can be done online or with the help of a tax advising agency. There is a difference between your gross salary (pretax) and your net income (after tax). The payroll tax levy is made up of tax on your salary and national insurance contributions for pensions, unemployment benefits and other miscellaneous allowances. This is one of the reasons why it is possible to still receive money once your contract is up and you are (temporarily) in between jobs.

The time for submitting your annual income tax return is from the 1st of March to the 30th of April. It is possible to request an extension period. You can do this through the website of the belastingdienst. If you do not submit your tax return or request, you are able to file taxes for up to five years after a fiscal year. So, for example, in 2021 you can still submit your return from 2016.

Are you a nurse seeking to move to the Netherlands to expand your career?
Since 2012 we have hired more than 500 nurses from over 10 different countries. In 2020, GHP’s Healthcare and Pharmaceutical Awards named us the Best Nursing Staffing and Recruitment Company in the Netherlands.  EMTG provides Dutch language and culture lessons, arrange housing for you and of course assistance in the tax return process. Furthermore, you will also receive a job mentor to help you settle in the Netherlands on the work floor and at home. You can contact your local recruiter for more information. Holland is one of the best countries to work in as a nurse. What are you waiting for?