Hey there, brave one! So, you’ve decided to embark on the exhilarating journey of working in the Netherlands as an international student. But hold onto your clogs, because there’s one obstacle standing between you and your dreams of being a millionaire (or being able to afford ramen): The Dutch Tax Return.
Different Types of Tax?
a. Income Tax (Inkomstenbelasting): Ah, the dreaded income tax. This is the lion’s share of your tax burden, where the Dutch government takes its cut from your hard-earned wages. Remember, it’s not personal; they just really love infrastructure.
b. Payroll Tax (Loonheffing): Brace yourself for the joyous moment when you realize your employer has been sneakily withholding part of your salary for tax purposes. Loonheffing is like finding out your favorite stroopwafel has a bite taken out of it before you even open the package. Payroll Taxes includes wage taxes and National Insurance Contributions.
- Wage Tax is an advance payment of your income tax made by your employer.
- National Insurance is a social security insurance that is paid automatically from your wages.
c. Wage Tax Deduction (Loonheffingskorting) this is a benefit offered by the government on the wage tax you pay with your salary. This means less taxes, more salary and more money for you to spend at Albert Heijn. Want to know more check out Loonheffingskorting: A Guide for International Students
Which Tax Form Do I Need?
- M Form: Your trusty companion for filing taxes as an international student in the Netherlands. It’s your ticket to proving your non-resident status and avoiding any tax-related nightmares.
- P Form: This form is typically filled out by private individuals. You fill it out if you are a regular resident.
How To Get Started
Now, let’s tackle the beast that is filing your income tax return. Here’s your battle plan:
a. Gather Your Arsenal: Arm yourself with all the necessary documents, from your employment contract to any income statements and receipts. You’ll need these to prove your worth in the eyes of the tax authorities. You’ll also need your DigID, so apply as soon as you can as it can take up to 5 days to apply for one.
b. Choose Your Weapon: Decide whether you’re using the M Form for regular employment or the P Form for residents. Choose wisely, for the fate of your refund hangs in the balance.
c. Seek Allies: Don’t hesitate to seek help from tax consultants, online resources or even your friend who speaks Dutch, if you find yourself lost in the labyrinth of Dutch tax regulations. Remember, even the bravest warriors need reinforcements from time to time. (But seriously the entire form is in Dutch so you might need some help)
