Dutch tax declaration: Income declaration in the country of residence not always mandatory

9. January 2024

Residents of Germany and Belgium no longer have to submit a declaration of income in their country of residence when filing a Dutch tax return. From the start of 2024, an income declaration can be waived if the requirements for a qualifying foreign tax liability were already met in previous years.

A foreign income declaration will only be required if the Dutch tax authorities carry out an audit or if the conditions for qualifying foreign tax liability have only recently been met. In these cases, the authorities will request the form.

If the foreign tax authorities do not issue the income form, it is possible to prove the foreign income by means of a corresponding tax assessment or tax return.

This decision applies retroactively from the 2018 tax year, which means that many tax returns that do not include an income declaration can be processed more quickly.

What is the qualifying foreign tax liability?

If someone who does not live in the Netherlands but is taxed on 90% or more of their income in the Netherlands, they can be considered a qualifying foreign taxpayer. This means that a tax return can be filed in the Netherlands that includes the tax benefits available in the Netherlands. This includes not only the mortgage interest deduction, but also the tax benefit from the income tax credit. If the conditions are not met, you are a foreign taxpayer and there are far fewer tax benefits.

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