Income tax filing window now open; Already over a 100,000 returns submitted

The filing window for income tax returns opened at midnight, and many Netherlands residents have already jumped to file their returns. Over 100,000 returns had already been received before 9:00 a.m. on Tuesday, the Tax Authority reported. Entrepreneurs and private individuals have until May 1 to submit their 2021 tax returns to the Tax Authority.

This year, over 8 million people received a tax return letter. These 6.8 million private individuals and 1.5 million entrepreneurs are obliged to file a tax return. People who want to file their return later due to the coronavirus crisis or other reasons can ask the Tax Authority for a postponement. People who submit their returns by April 1 can expect an answer on whether they'll receive a refund or have to pay in by July 1. 

Last year, the Tax Authority received 9.8 million income tax returns - a record. Due to technical problems at the start of the filing period, the deadline was extended by a week. According to the Tax Authority, 98 percent of the returns were processed by July 1.

Netherlands residents who have to declare income from savings and investments in box 3 on their tax return can do so as usual. According to the Tax Authority, the recent Supreme Court ruling on this capital gains tax will be considered when determining the final assessment. Because of the ruling, many people should get "legal redress" because of the unrealistic fictitious returns that the Tax Authority used when calculating the tax on savings. The Cabinet is now working on the complicated puzzle of compensation. When it becomes clear exactly what all this means, the Tax Authority will calculate the correct amount for everyone. 

This is also the last time that study costs are deductible in the tax return. From March 1, people can apply for a reimbursement for a course from the benefits agency UWV. This is called the STAP budget.