News item | 01-03-2022 | 08:53
More than 8 million people can file an income tax return for 2021 from Tuesday 1 March. The Tax and Customs Administration has already filled in as much information as possible in advance. It is important to check this data properly and add it where necessary. Especially when something has changed in 2021. And for everyone who finds filing a report a difficult task, there is help.
Approximately 6.8 million private individuals and 1.5 million entrepreneurs have recently received an invitation to file a tax return for 2021. The tax return period runs from 1 March to 1 May. For many people, if they file a tax return before April 1, they will hear before July 1 whether they will receive a refund or have to pay.
As in previous years, the Tax and Customs Administration is making filing a tax return as easy as possible. Many details are pre-filled. This helps people to make a timely and complete declaration and reduces the chance of unconscious errors.
Changes in personal situation
If something has changed in the personal situation, it is even more important to check and complete the declaration properly. Examples of this are a divorce, stopping a company or transferring a mortgage.
For example, if people have refinanced their mortgage for their own home in 2021 because of the low interest rate, they will probably pay less mortgage interest. So they can deduct less. On the other hand, the refinancing costs of the mortgage and the penalty interest are usually deductible. It is important to properly check and supplement such data. This and other important information about completing the 2021 return can be found at www.belastingdienst.nl/filing†
Corona support measures in the declaration
Entrepreneurs could also make use of corona support measures in 2021. The tax consequences of these corona support measures are different for everyone.
The Tax and Customs Administration takes into account received support measures in the return. The bridging scheme such as the Temporary Bridging Scheme for Self-employed Entrepreneurs (TOZO) has already been completed in advance in the declaration. Entrepreneurs are asked to carefully check the data on these benefits and to adjust them if necessary. Entrepreneurs are also referred to the sections relating to the Compensation for Entrepreneurs Affected Sectors COVID-19 (TOGS) and Compensation for Fixed Expenses (TVL), which have been designated as exempt profit components. In addition, the declaration contains a reference to the relaxed hours criterion.
Help with declaration
The Tax and Customs Administration considers it important that filing a return is as simple as possible, but also understands that some find it difficult. “We want everyone to file a tax return with peace of mind, so it’s good to know that you’re not alone,” says Heleen Bisschoff-Moonen, director of the Private Individuals Department at the Tax and Customs Administration. “Help comes in many forms, both within and outside the tax authorities. Think of our website where you can find everything about the declaration. But also help from the close circle or from social organizations such as libraries and trade unions. And you can also ask general questions on our social media channels. In short, a little extra help is never far away.”
Due to a shortage on the labor market, the Tax Information Line is currently also having to make do with fewer people. As a result, waiting times may be longer than usual. For answers to the most frequently asked questions about filing a tax return, you can also visit www.belastingdienst.nl/filing. More information about help with tax returns can be found at Belastingdienst.nl/hulp.
Box 3: declaration as usual
The Supreme Court has ruled that the Tax and Customs Administration must base itself on the actual return on savings and investments. The consequences of this have not yet been incorporated in the current 2021 tax return programme. As a result, taxpayers with box 3 income see an income and a calculated tax amount in the tax return program that may not be correct. The decision on how to carry out the judgment will be taken around the beginning of May. People who file a tax return in box 3 can do so as usual. The Tax and Customs Administration keeps the returns with box 3 separate. If it is known what the recovery will look like, the Tax and Customs Administration will calculate the correct amount.
Because a decision will be made on a solution after the tax return period, the final assessments will probably be imposed on people who file a tax return in box 3, later than the usual date of 1 July. They will be informed about this by the tax authorities.
Provisional assessment
The 2022 provisional assessment also does not yet take into account the possible consequences of the Supreme Court’s ruling. As a result, the provisional assessment for 2022 may be too high for citizens with a box 3 income. For citizens with an amount to be refunded, the refund may have been set too low as a result. Citizens can simply pay the provisional assessment. The provisional assessment 2022 will be set off against the final assessment 2022, which does include the consequences of the judgment. But there is also the option for people with box 3 income not to pay the provisional assessment for 2022, because a payment break will be introduced for them. More information about tax returns and box 3 can be found at tax authorities.nl/box3†