In this issue
• Income tax return 2007
• Income tax rates 2008
• Reminders for 2005 and 2006
• The 30% ruling
• Interest on tax claims
• Next issue
First of all we would like to wish you a happy and healthy 2008 with a lot of tax benefits for you. We have started sending out newsletters again to keep you informed about the changes in the Dutch tax laws. This first newsletter is sent to all the persons in our addressbook. Your email address was found in our addressbook. It may be that you didn't contact us before but were not blind copied on emails from other persons. We have checked all email addresses as good as possible but it may be that your email address should not have been on the list. In that case we apoligize for the inconvenience. You can of course always unsubscribe to prevent receiving future mailings.
Since 2 January 2008 it is possible to file the income tax return for the year 2007. If you receive an invitation from the tax office to file a tax return then this must be done before 1 April 2008. Once you have received all the necessary documents the tax return can be filed.
The combined tax rates in the first bracket have been reduced with 0.05% to 33.60% while the rates in the second bracket have been raised with 0.45% to 41.85%. The rate for the third bracket stays 42% and the rate for the fourth bracket 52%. The brackets have also be extended.
The tax office has informed us that they are going to send out reminders for 2005 and 2006 tax returns which haven't been filed yet and for which there is no time extension anymore. If you receive a reminder and don't have a time extension then the tax return must be filed within 10 workdays after the issue date of the reminder. Reminders will be sent starting on 9 January. It is important that the necessary action is taken. Of course Expatax can assist you with filing the return in time. You can find our procedure here.
There are no changes in the 30% ruling in 2008. The ruling stays a very good option to reduce the tax burden for an expat who comes to work in the Netherlands and has specific skills and experience which are scarce on the Dutch labor market. It is important that the requirements are met and that the application is filed the right way. Minor changes can already affect the application. Expatax files applications on a daily basis, with an extremely high success rate because of our specific experience. That's why a lot of employers have handed over the whole procedure to our office.
The tax office calculates interest on a tax assessment if it has been sent to you after 1 July of the tax year. The current interest rate is 5.3% so the calculation of interest can lead to a high extra amount depending on the amount of the tax claim.
In the next issue we will discuss changes in the payroll for 2008 and also recent interesting court cases and changes in rules and policies.