What is the Dutch income tax return?
At the beginning of each year, in the Netherlands you have to file your income tax return, declaring your income, assets and deductions. If you have a Dutch income and lived in the Netherlands throughout the whole year, you can submit your tax return online. Usually, you’ll receive a reminder from the Belastingdienst (the blue letter!) when it’s time to file your income tax return. You’ll log into your MijnBelastindienst-Account with your DigiD and fill in the forms that are waiting there for you. Typically, a lot of data is prefilled, like the salary you received or the heffingskorting etc. If you have the correct data at hand and your financial situation is not too complicated (e.g. you’re not a house owner, didn’t make any investments etc.), filing income tax returns in the Netherlands is pretty straightforward and doesn’t take up too much time. The downside of the digital forms is, they are only available in Dutch.
If you haven’t lived in the Netherlands throughout the whole year, but started earning withing your first Dutch year, you have to fill in the dreaded M Form (Migration income tax return form). The M Form is a 60 pages long book”let”, which can not be submitted online.