Covid-19 tax consequences

If you are an Expat working for a Dutch employer, but have been working remote from another country in 2020 this may have consequences for your 2020 tax return. Your physical work location is very important tax-wise and determines where you have to pay income tax. If you have unexpectedly worked more time outside of the Netherlands then expected you should bear in mind that the other country might send you a tax bill. This is the case if you have worked more than 183 days abroad, based on the so called 183 day rule. The Netherlands should then grant you double taxation deduction in proportion to the days worked abroad.

If you migrated to the Netherlands in 2020 and worked partially in the Netherlands and partially abroad you will have to file an M form.

A qualified tax advisor can assist you by filing your 2020 tax return or M form correctly and by requesting for the double taxation deduction. Otherwise you are risking an unexpected tax assessment years later with fines and interest.

Be aware that an online tax return service with a low fixed price may seem more profitable but does not always take all details of your situation into account. Especially in more complex situations an important detail is easily missed, leading to too high or too low tax bills.

Are you also working outside of the Netherlands in 2021 for longer periods? Make sure to check tax consequences beforehand. A tax expert can support you with structuring your situation as tax beneficial as possible.

Are you planning to migrate to the Netherlands in 2021? Also in that case tax advice in an early stage can help you optimize your Dutch and foreign tax situation.

J.C. Suurmond & zn. Tax consultants would be happy to support you with tax advice in the situations above or related situations. They have been assisting Fixed Today clients and expats by optimizing their international tax situation for many years.

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