The importance of a 'correct' preliminary assessment
The time of year has arrived again when a provisional assessment/refund of income tax and/or corporate tax 2024 arrives on the doormat of many Dutch people.
For many of our clients, this is in line with previous years. This is because the IRS bases it on an estimate of your income and expenses. So this does not always mean that this provisional assessment is an accurate reflection of reality.
A life event or certain financial developments can have a major impact on a future assessment. A life event can include the death of (a) parent(s) resulting in an inheritance. Other common financial developments include: the purchase of a home, gifts, dividend payments and, for entrepreneurs, a higher or lower profit compared to the previous year or previous years.
Tax interest applicable from Jan. 1, 2024 (income tax 7.5% and corporate tax 10%), begins to count from July 1, 2025.
No tax interest will be charged if your income or corporate tax return is filed with the Tax Office within six months of the end of the (fiscal year) and is accepted without changes. In addition, tax interest can be reduced or avoided by timely requesting a correct provisional assessment. It is therefore important that we have been able to make a correct estimate of your income and assets for the year 2024 before July 1, 2025.
Last week we approached our clients by email to contact us if they expect that the preliminary assessment 2024 or even still the preliminary assessment 2023 is not in line with expectations. For each customer we can then see what the necessary adjustments are and make a customer specific price for this work.
Would you like to learn more about the tax interest system or do you have questions about your preliminary assessment? We would be happy to tell you more about it.
