M-formulier or not?

[bibbo]

Hello all,
Sorry if I write in English, but my Dutch is not the best - hopefully english is a bit better

I have a question that bothers me: I have been in the NL for a few years, and never got any invitation to file my taxes yet. I always supposed this is because I did not owe anything (I only worked for the same company and also have 30% ruling option). From what I understand you only have to file if you’re invited to do so OR have to pay more than ≈70€ (not my case).

By filing I would probably even gotten some money back as I got some raised over the years (and in the first year I had no income before moving to NL), but I never thought it's worth the hassle.

Did I have to file the M-form for the previous year and taxes for the remaining, or I am fine with my interpretation?
If yes, I guess this can still be fixed or it would be seen as late filing or any sanctionable behaviour?

[Ilmar]

You're right that you only have to file if asked or if you owe €47 or more (https://www.belastingdien...t/moet_ik_aangifte_doen). In those cases the deadline usually is may of the next year (after which you may risk a fine, but this typically is only applied if you pass the deadline on the reminder).

You're also right that you're likely to be able to get a return. At any time you can still file for the past 5 years. (https://www.belastingdien...ug-belastingaangifte-doen) If you haven't gotten the M-biljet for the year of immigration, you can request this through the website or phone service - this likely is also the most interesting return, since employers don't account for partial-year-income.

[bibbo]

Thanks, this helps me a lot, I had an accountant raising some doubts and this made me insecure (I have OCD and these topics stress me a lot, I want to be 100% sure everything is compliant )

Other question: if one has the 30%, he can not declare box 2-3 income. What if there is no return (I'm not sure if there is an explicit opt-out or you just put 0 in it) ? My assumption is that since I would not pay box 2-3, so potentially no tax and no need to file a return as I owe less than 47€. Is this correct?

[GlowMouse]

bibbo schreef op maandag 29 juni 2020 @ 18:15:
Other question: if one has the 30%, he can not declare box 2-3 income.

He can choose for partial non-resident taxpayer status. The choice has an effect on the tax base for box 2-3. Some assets are taxed even if you are not a resident.

What if there is no return (I'm not sure if there is an explicit opt-out or you just put 0 in it) ? My assumption is that since I would not pay box 2-3, so potentially no tax and no need to file a return as I owe less than 47€. Is this correct?

You have to make the choice explicitly. If you do not file taxes and would owe box 2-3 as a resident, you risk a 'verzuimboete'.

[Ilmar]

First, box 2 is income from corporate holdings and box 3 is income from savings & investments. Most of these don't have any witholding in advance, like your employer does for box 1 (income from work). If there's nothing witheld, there's also nothing to return.

Second, with the 30%-measure you have the option of being a 'partial non-resident' or not (https://www.belastingdien...enlandse_belastingplicht/ ). So you just decide what's more favourable. I'm also not sure how it works in the program in practice, but it typically adapts quite nicely to the situation and choices you make and you can just try stuff out, nothing is final until you hit send.

Most returns are usually due to the witheld income tax on your salary. First of all the witheld tax is typically calculated based on 'best case scenarios (ie. it tends to assume you're richer than you really are)': it uses rates that assume you'd get that exact salary the whole year and taxes one-time payments at the top rate. So, especially changes in employment throughout the year cause mis-estimations because your actual salary for that year might put you into a lower rate bracket. And second of all you might be eligble for deductions which your employer doesn't take in account.

[bibbo]

GlowMouse schreef op maandag 29 juni 2020 @ 19:06:
You have to make the choice explicitly. If you do not file taxes and would owe box 2-3 as a resident, you risk a 'verzuimboete'.

"De in het eerste lid genoemde keuze kan worden gemaakt en herzien zolang de aanslag niet onherroepelijk vaststaat."

Does that mean that it can still be done even for previous years?

[GlowMouse]

bibbo schreef op maandag 29 juni 2020 @ 20:31:
[...]


"De in het eerste lid genoemde keuze kan worden gemaakt en herzien zolang de aanslag niet onherroepelijk vaststaat."

Does that mean that it can still be done even for previous years?

Absolutely, up to five years ago.

[bibbo]

GlowMouse schreef op maandag 29 juni 2020 @ 20:32:
[...]

Absolutely, up to five years ago.

and no sanctions? I basically don't have to pay any tax, so even if late, i'm not sure if I technically be "at fault", in a way it's better for them if I dont do anything as I would get money back from a return - that's probably why they never invited me

[Ilmar]

De Belastingdienst only cares if you don't pay enough. They don't mind at all about any "mistakes" to their advantage.

[AlbertJP]

You do get a letter from them though in many cases if they owe you money.

In any case if they didn't ask you to fill in your taxes and you have no reason to assume you owe them anything (like income on which tax wasn't withheld), it's fine.

[bibbo]

AlbertJP schreef op maandag 29 juni 2020 @ 21:42:
In any case if they didn't ask you to fill in your taxes and you have no reason to assume you owe them anything (like income on which tax wasn't withheld), it's fine.

FIne also if I dont do anything or I need to do the return? They are quite expensive..

[GlowMouse]

bibbo schreef op maandag 29 juni 2020 @ 20:35:
[...]


and no sanctions? I basically don't have to pay any tax, so even if late, i'm not sure if I technically be "at fault", in a way it's better for them if I dont do anything as I would get money back from a return - that's probably why they never invited me

If you were a resident of the Netherlands for tax purposes (based on your personal situation), and if in principle you owed box 2-3 income tax, you should have filed sooner to opt-in for partial non-resident taxpayer status. I cannot predict if you will get fined for filing late, but I think it is unlikely as you get a refund like you say (but catch 22: only after you file). From a practical perspective, the Dutch tax service might not be aware of your box 2-3 assets, and when you file as a non-resident you do not have to disclose them, so they might not know that they can fine you.

[bibbo]

GlowMouse schreef op maandag 29 juni 2020 @ 22:44:
[...]

If you were a resident of the Netherlands for tax purposes (based on your personal situation), and if in principle you owed box 2-3 income tax, you should have filed sooner to opt-in for partial non-resident taxpayer status. I cannot predict if you will get fined for filing late, but I think it is unlikely as you get a refund like you say (but catch 22: only after you file). From a practical perspective, the Dutch tax service might not be aware of your box 2-3 assets, and when you file as a non-resident you do not have to disclose them, so they might not know that they can fine you.

Thanks. I guess they can know as 90% of my assets are anyway in dutch banks =)

[Outerspace]

Volgende keer graag in het Nederlands, we zijn immers een Nederlandstalig forum Bijna alle informatie over belastingen kan je opvragen via de belastingtelefoon, gelukkig hebben we hier al wat parate kennis in huis. Voor meer informatie > Belastingdienst.