When do entrepreneurs need to file their tax returns?

When do entrepreneurs need to file their tax returns? Which taxes do you need to file for? Will you be fined if you miss the deadline? As a business owner, it can be confusing to know when and which tax returns you need to submit. Below, you’ll find the deadlines and timelines for all the tax returns entrepreneurs need to file.

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Which tax returns do you need to file?

As an entrepreneur, you deal with several types of taxes. If you have a sole proprietorship, you need to file for VAT (Value Added Tax) and income tax. If you are a shareholder in a limited company (BV), you will need to file additional taxes, including corporate tax (corporation tax), payroll tax (PAYE), and dividend tax.
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When do you need to file your VAT return?

The VAT return is typically filed quarterly. You file your returns in April for the first quarter, July for the second quarter, and so on. In some cases, you may need to file annually (especially for very small businesses) or monthly (for larger businesses). The return must be submitted in the month after the period ends. It’s important to note that VAT is a "self-assessment tax", meaning you pay the tax after you submit your return. You do not receive an assessment notice beforehand. Therefore, make sure to submit your VAT return on time and pay the tax due immediately after filing. If you fail to submit the VAT return or pay on time, you will often receive an immediate fine. The amount of the fine depends partly on the VAT due.
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When do you need to file your income tax return?

Normally, you must submit your income tax return by 1 May at the latest. If you’re slightly late, you usually won’t receive an immediate fine. You’ll first get a reminder, followed by a formal demand. The final deadline is often extended to 14 July. If you submit the return after this, you will face a fine.As an accountant, I always request an extension for my clients for income tax returns, which is typically granted until 1 May of the following year. Of course, I submit the returns as quickly as possible, so the entire extension period is rarely used. The extension ensures that you don’t incur a fine. Unlike VAT, income tax is an "assessed tax". This means that you file your return first, then you receive a tax assessment from the tax authorities, and only then do you pay the income tax due. The payment deadline for income tax is six weeks after the assessment date. If you’re late paying, you won’t face an immediate fine, but eventually, you’ll incur fines and late payment charges.

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When do you need to file your corporate income tax return (vennootschapsbelasting)?

A BV (limited company) pays tax on its profits, known as corporate income tax. When do you need to file your corporate income tax return? The deadline for filing corporate income tax returns is similar to that of income tax. Corporate income tax returns are also filed after the year has ended. Typically, the deadline is 1 June. As with income tax, I request an extension for my clients, which is granted until 1 May of the following year. For the 2024 tax year, the return must be filed by 30 April 2026. For corporate income tax, it is crucial to submit your return on time, as the fines for late submission are substantial. If you incur a fine for late filing, it can start at €3,354. So, it’s really important to meet the deadline.

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When do you need to file your payroll tax return?

If you are a shareholder in a BV, you are technically an employee of the company. The BV pays payroll tax (loonge belasting) on your salary. When do you need to submit this return? Usually, the payroll tax return is filed monthly. Like VAT, payroll tax is a self-assessment tax. This means that the return and the tax must be filed and paid by the end of the month following the month in which the tax applies. For example, the return for June must be filed and paid by the end of July. The tax authorities are strict about submitting and paying payroll taxes on time. This is because payroll tax is a prepayment of income tax, meaning the paid payroll tax will be deducted from your final income tax liability. Since employees depend on the company to pay the payroll tax, you’ll receive an immediate fine if the return is not submitted or paid on time.

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When do you need to file your dividend tax return?

The deadline for filing dividend tax returns is slightly different from the other taxes mentioned above. Dividend tax is levied when a BV distributes profits to its shareholders. When do you need to file the dividend tax return? The dividend tax return is also a self-assessment tax. This means you must pay the tax after filing the return. However, since a BV usually distributes dividends only once a year, there is no recurring period for filing the dividend tax return. You only file the dividend tax return when dividends are distributed. This typically happens following a decision by the General Meeting of Shareholders (GMS). Once the GMS decides to pay dividends, the return must be filed and paid within the same month. Therefore, it is advisable not to schedule the GMS meeting at the end of the month, as this shortens the time available for filing and payment.

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Conclusion

As an entrepreneur, it’s important to know which tax returns you need to file and when the deadlines are. If you're not properly informed, you risk fines. Another consequence of failing to file on time could be that you no longer receive extensions or that you have to file VAT returns monthly instead of quarterly. To avoid the above, I always keep my clients closely informed about deadlines and send reminders for when returns need to be filed. This ensures that tax matters run smoothly and you avoid fines.

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