Foreign Assets and Voluntary Disclosure

Individuals or legal entities residing or established in the Netherlands are legally obligated to declare their entire income and assets to the Dutch Tax Authority. This also applies to income and assets accumulated or held abroad. Not reporting them in the Dutch tax return constitutes an offence punishable by fines or even criminal prosecution.

Increasingly, the Netherlands and other countries exchange tax information, allowing the Tax Authority to trace foreign income and/or assets. In such cases, the law formerly provided e leniency programme to disclose (in)correct tax returns without fines or criminal prosecution. However, this programme has been discontinued with limited options still open for old cases. .

If you have omitted to mention your complete income and assets in the Dutch tax return, it may still still be advisable to make a disclosure to the Tax Authority, despite the limited lenicency. A voluntary disclosure meeting all requirements remains a mitigating circumstance for fines and prevents criminal prosecution.

Wladimiroff’s lawyers have extensive experience with voluntary disclosure procedures.