Residents of the Netherlands should declare their entire worldwide income in their income tax return. This worldwide income also includes the revenue which the Netherlands is not allowed to tax under national and international regulations. Examples of such revenue are income from employment, profits from business activities or capital in other countries.
Non-resident taxpayers, emigrants and immigrants can choose whether or not they want to be treated as taxpayers resident in the Netherlands. This choice is known as the right of option (keuzerecht). If you opt for resident taxpayer status, you should declare your entire worldwide income received in 2009. In that case, it is possible that your foreign revenue is also taxable in another country. To avoid a situation where you have to pay tax in both countries, the Netherlands grants a credit against the tax owed, which is known as double tax relief.
