Tax return for fiscal partners Netherlands

Tax return for fiscal partners

TAX RETURN FOR FISCAL PARTNERS NETHERLANDS

If you have a tax partner, this can have consequences for the tax you have to pay or which you get back. You can then file an income tax return together with your tax partner and divide certain income and deductions between the two of you. Tax partnerships can also have consequences for the tax credits you receive. In this article we inform you about the possibilities of arranging your tax returns as a tax partner. Please contact us directly if you have any questions.

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TAX RETURN NON-WORKING SPOUS

When you work and have taxable (salary) income in the Netherlands and your partner does not work, we strongly recommend to file a tax return on behalf of your spouse as this in most cases will lead to an amount receivable. A refund amount that the Dutch tax authorities will pay you if they agree on the tax return and you have your bank account registered with the Dutch tax authorities. We can help you with the filing of your spousal tax return.

WHAT ARE THE CONDITIONS FOR FISCAL PARTNERSHIP?

You are a tax partner in the tax return year if you meet one of the following conditions:

  1. You are married.
  2. Does your spouse live outside the Netherlands? Then you are only tax partners if your spouse qualifies as a foreign tax resident.
  3. You are a registered partner.
  4. You are not married, but you are both registered at the same residence address with the municipality in the Basic Registration of Persons (BRP) and you meet one of the following conditions:- You are both of age and you have a notarial cohabitation contract.
    – You have a child together.
    – One of you has recognised a child of the other.
    – You are registered with a pension fund as pension partners. It is not sufficient if you have only registered your partner with your employer as a pension partner.
    – You jointly own your own home, in which you both live.
    – You are both of age and at the address where you are both registered in the BRP a minor child of one of you is also registered. Attention! Exceptions apply.
    – You were tax partners with the other person in the previous tax return year.Do you live with your child or with your father or mother during the tax return year? And do you meet one of the conditions for a fiscal partnership? Then you are only a tax partner if you were both 27 years of age or older on 31 December of the previous year.

 

CONSEQUENCES FISCAL PARTNERSHIP

Fiscal partnership has implications for:

– the level of your income
If you are tax partners all year round (or choose to be considered tax partners all year round), you may distribute certain income and deductions so that you pay as little tax together as possible.

– the level of threshold amounts
You must add up your threshold income and that of your tax partner in order to calculate your threshold amounts.

– tax credits
Is your tax partner liable to pay sufficient tax? And do you have no or a low income yourself? Then, under certain conditions, we will pay you part of the tax credits.

Are you tax partners all year round? Or do you choose to be considered fiscal partners all year round? Then you may divide certain income and deductions in the tax return as you wish. This also applies to the withheld dividend tax. Any distribution is allowed, as long as the total is only 100%. The person with the highest income can then, for example, deduct the costs. This gives you the greatest tax benefit. Please contact us to discuss the possibilities.