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How to declare foreign joint accounts in the Dutch tax return?


Question:

I have a joint account in India with my mother. My mother does not live in the Netherlands or has any tax relation with the Netherlands. Also, I don‘t have the 30% ruling. Do, I need to declare this account and pay taxes on savings in the account?

Answer:

Since you are living in the Netherlands you will indeed have to declare your world wide income and savings and investments. If another country also claims tax on certain income the applicable tax treaty will determine which country can tax the income. The other country will then have to offer an exemption to prevent double taxation. It is also possible that a country can withhold tax at source against a certain percentage (for India the percentage is 15%). This may be applicable on interest on a bank account. If tax at source is withheld a credit can be claimed in the Dutch tax return for this amount.

A joint account leads to additional difficulties. The amount on the account is owned partially by each account holder. This isn‘t automatically 50/50. Relevant is who deposited which amount on the bank account. If 70% of the balance of the account is deposited by you, then you will have to declare 70% of the balance in the Dutch tax return.

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