Tax Deduction

Hi. I just want to ask if my real properties, money in the bank, income tax return  from the Philippines have any bearing on my Dutch Husband’s taxes? Will he get any tax deductions or exemptions? I don’t understand why he wants to have knowledge of my financial status in my home country and if there is a need for me to have to declare it.

Hi and welcome to the Forum.

Tax assessments in the Netherlands are individual matters; if your husband is resident in the Netherlands, he will be assessed on his worldwide income for both Dutch income and social taxes.  It follows that if he shares joint assets/accounts with anybody in any country in the world, he must declare those to the Dutch taxman.  It follows that if your accounts are in your name only, and you don't live in the Netherlands, they do not have to be disclosed.

Thank you for the information. I am now a resident of The Netherlands, having received my resident permit just recently, but my husband and I have a prenuptial agreement of complete separation of properties.

Hi again.

Interesting one; so how have the Belastingdienst found out about these properties and money in the bank; somebody must have disclosed them.  You are aware that you will have to disclose them on your own annual tax return?

Hope this helps.

Cynic
Expat Team

You are now in the Netherlands you have to comply to the Belastingdienst to pay taxes of your assets. It is the law, if you don't comply the give you a fine.

I understand that it's not a fun thing to do, but it must be done.

Hello. Thanks for your reply. No, the Dutch Tax Authorities do not know of these yet and I have no plans of disclosing these properties and money. That’s why i was wondering why my Dutch husband wants me to give a copy of my financial documents to his accountant. He says it’s for tax purposes BUT I have no income in The Netherlands yet and I’m still paying my taxes in the Philippines.

Hi again.

There is a double taxation agreement in place between the Netherlands and the Philippines; they basically mean you won't be charged general taxes on your Philippines assets that have been assessed by the Philippines Government; those general taxes being for:

– de inkomstenbelasting (income tax)
– de loonbelasting (wages tax)
– de vennootschapsbelasting (company tax)
– de dividendbelasting (dividend tax)

However, you will be assessed for social taxes; these being:

General Old Age Pensions Act (AOW): 17.9% maximum €6,084,93
General Surviving Relatives Act (ANW): 0.1% maximum €33.99
Long-term Care Act (WLZ): 9.65% maximum €3,280.42

These are not optional taxes; if you're resident in the Netherlands, they have to be assessed and paid if required.  You will be sent an annual tax declaration to declare your worldwide income and assets (if you don't submit a tax return, you will be fined - currently €4,920; it's automatic, there is no discussion about it).

There are ways of off-setting costs you incur in maintaining any assets you hold; I strongly recommend that you do disclose everything to your husband's accountant, he will then be able to advise you both on what to do to minimise the impact of any Dutch taxes for you both.

Hope this helps.

Cynic
Expat Team

Thank you so much for your reply. All the information you just gave are very helpful. I will do just that.

Hi

I know this is an old post but i an in a similar situation now and wondering how should i go about it and would appreciate to know perhaps how it turn out to be?

lawrencelow :

Hi

I know this is an old post but i an in a similar situation now and wondering how should i go about it and would appreciate to know perhaps how it turn out to be?

Hi again.

I've just answered your message.

Cynic
Expat Team

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