Income tax return for 2018

Your pre-completed income tax return for 2018 is ready for you to be used. Below please find a summary of this year’s changes compared with 2017 and other points for particular attention.

The first of May of this year is the deadline for filing your income tax return for 2018. Those who get their tax return in by the first of April 2019 will, and those who file at some point during the month of April (but before the first of May) may, be notified by the Tax and Customs Administration before the first of July. No interest on outstanding taxes will be charged to those to whom the Tax Office has got back before the first of July 2019.

Changes

These are the main changes compared with 2017:

• If your taxable income places you in the uppermost bracket, please note that the rate governing deductible expenses incurred in connection with your own home has been changed to 49.5 percent for 2018.
• The “Box 3” fixed yield tax rates have changed, as follows:
  1. for assets in the nought to 70,800 euro range: a tax rate of 0.36 percent applies to two thirds of the yield, with the remaining third being taxed at 5.38 percent;
  2. for assets in the 70,801 to 978,000 euro range: a tax rate of 0.36 percent applies to 21 percent of the yield, with the remaining 79 percent being taxed at 5.38 percent;
  3. the entire yield from assets over and above 978,000 euros is taxed at 5.38 percent.

The average yield is now liable for a 30 percent income tax charge, whereas the tax-free allowance has been raised to 30,000 euros.

Fiscal partnership

If you are involved in a fiscal partnership, make sure that your (combined) income tax return duly reflects this. The main perk of fiscal partnership is that it offers the partners the – potentially fiscally advantageous – option of “divvying up” particular income components and deductible items between them, such as:

• the balance of own home-related income and deductible expenses,
• the gains from “Box 2” substantial interest(s),
• the shared “Box 3” savings and investments basis,
• specific health care expenses incurred.

We would for the record point out that you should include all of the income components and deductible items in your (combined) income tax return.

Filing extension

It is important promptly to file an extension request with the Tax and Customs Administration if you have any doubts at all as to your ability to file your income tax return before the due date of 01 May 2019

Dutch version: Aangifte inkomstenbelasting 2018