The new tax rules per January 1, 2019, are meant to increase the average spending budget. This sounds good, but it is still worth checking if you can save more money on taxes. Read this tax update by J.C. Suurmond & zn. to make sure your 2018 tax return is optimised and you are aware of the 2019 changes.
Why you should always check if filing your tax return is beneficial
Are you relieved that you haven’t received a tax office invitation from the Belastingdienst to file a Dutch tax return? That may not be smart because it might pay off to file your taxes anyway! It is quite possible that you can claim money back, especially in your migration year and if you have a higher than average income.
Furthermore, expats often have more tax deduction possibilities than Dutch taxpayers. But to make use of these, you will have to file a tax return. It is possible to file your tax returns up to five years retroactively (so, 2014).
Will the changes to the 30% ruling have an impact on your tax return?
The initial Dutch government plan to cut the 30% ruling period from 8 to 5 years without a transition period for current expats caused great turmoil. The result of the many protests is that if you are already making use of this favourable ruling, it will now terminate after 5 years unless this period is reached in 2019 or 2020. In this case, the 30% ruling will terminate as per the original 30% ruling decision or at the latest, January 1, 2021.
This means that the 30% ruling period change will, most likely, not affect your 2018 tax return, unless you reached the end of your 8 years in 2018.
Read more about the changes in the income tax system, mortgage-related expenses, and other important tax return subjects here.