Dutch taxes on foreign (US) accounts
Article ID: 287 | Last Updated: Mon, Nov 30, 2015 at 11:19 AM
I am a US citizen and have been living in the Netherlands for the past 2 years. I work here and pay taxes in both countries on my income (no 30% rule). I have some accounts in the US that do not generate any income/revenue (pension account, brokerage account...). Do I have to pay taxes in the Netherlands for these US accounts even if I do not make me any money or do I just need to report them?
Since you are living in the Netherlands you will have to declare your world wide income and world wide savings and investments in the Dutch tax return. The value of the savings and investments will have to be declared, the actual income from these savings and investments is irrelevant. This was decided to prevent that taxable interest or dividend would be changed to tax free increase of the value of the savings and investments. The fact that you do not receive income out of your US savings therefore doesn‘t mean that you don‘t have to declare these savings in your Dutch tax return. A result of declaring the US savings and investments is that you (may) pay tax on them in the Netherlands based on a fictitious income of 4% over the value of the assets against a tax rate of 30%. Total savings and investments are exempted from taxation up to an amount of around € 20,000 (changes every year). Everything above this amount will be taxed.
If you do receive income which is also taxed in the US, you can claim a foreign tax credit for the tax you have already paid in the Netherlands. For more info see https://www.expatax.nl/taxnewsusa.php
There are no attachments for this article.
What is the 4% notional income in box 3?
Viewed 4444 times since Tue, Jun 25, 2013
What is the tax year in the Netherlands?
Viewed 4653 times since Sun, Nov 27, 2011