The Dutch authorities levy various kinds of taxes on residents of the Netherlands; if you qualify as a resident taxpayer, you are liable to pay state taxes on income, wealth and assets, as well as regional or municipal taxes (gemeentelijke belastingen) for the provision of local services, like waste disposal. There are two types of taxes you should be aware of as a student in the Maastricht – income tax and waste collection levy.
Inkomstenbelasting (income tax)
Income tax is a tax that you pay for your income. In this article, you will find more information on how to pay it and what you need to take into account.
First, the basics:
- The Belastingdienst (in Dutch) is the Tax and Customs administration of the Netherlands. It is part of the Ministry of Finance and is responsible for levying and collecting income, wealth and assets taxes (inkomstenbelasting) in the Netherlands, as well as for implementing various allowances and schemes for Dutch residents.
- Who actually has to pay tax? If you live in the Netherlands, receive income within the Netherlands, or have demonstrable ties to the Netherlands, you qualify as a resident taxpayer. This means that you will pay taxes on your entire income worldwide, so it makes no difference where in the world you earn your income. The Belastingdienst considers any business, employment, or investment earnings or income in the form of periodic benefits as taxable.
- The Dutch fiscal year runs from 1 January to 31 December, and the time frame for submitting income tax returns is from 1 March until 30 April. It is possible to request a further extension, but this must be done before the deadline. You can request an extension by contacting the Belastingdienst.
- The government imposes taxes based on the ability-to-pay principle, which means that the amount of tax you pay depends on your level of income.
- Tax revenues are used to provide residents with education, security and health care, as well as social security, motorways and railways, among others.
- A percentage of your monthly salary is automatically deducted by the Belastingdienst. At the end of each year, you (may) need to file a tax return (belastingaangifte) where you are required to declare your income and assets. You are sent a final tax notice and in some cases will receive some of the tax you paid back.
Afvalstoffenheffing (waste collection levy)
Here, we’ll explain everything you need to know about afvalstoffenheffing, or the waste collection levy.
The BsGW
The Belastingsamenwerking Gemeenten en Waterschappen (BsGW) is the Councils and Water Boards Tax Collaboration and is responsible for levying and collecting all local taxes on behalf of the municipal councils and water boards.
What is afvalstoffenheffing?
The municipality collects and processes waste at least once a week. Even if you do not use the municipal collection service, once a year every household in Maastricht will be asked to pay municipal taxes by the BsGW. These taxes are put toward the house’s sewage system and trash collection.
Who receives the tax bill? And when?
The bill is usually sent to the person that has been registered at the house’s address for the longest; nevertheless it should be paid equally by all residents of the property.
The bills are usually sent out in the last week of February or the first week of March of the year for which the bill is being paid. If you are registered with MijnOverheid, you will receive the assessment notice digitally in your MijnOverheid message box.
Can I object to the amount I am being taxed?
No objection is possible against the level of the tax rates. These rates are set by the municipal council in regulations and no objection can be lodged. If you nevertheless submit an objection, the BsGW will declare that objection inadmissible.
Applying for a remission (kwijtschelding)
It is possible to get a remission, or tax exemption, from the municipality taxes. Find out more here.
