Tax return for expats: why you always need to file it.

Each country has its own tax calendar and laws about taxation. Nonetheless filing your tax return is mandatory in any country you worked in, regardless of your status, income and job.

Both failure to file and late filing are subject to penalties in every country, so we strongly recommend to tackle this matter in order to avoid debts. Even when, by assessing your tax return, you find out you already have a debt towards the state, not filing your it will cause your debt situation to worsen.

Hence, Dendax recommends to file your tax return in every case, regardless of the country you worked in: EU countries, USA, Australia, New Zealand and Canada apply penalties for not filing it. If you don’t know how to comply with it our tax specialists can help you.

The rules about the tax return filing in European countries are not harmonized across the Union: although conditions, tax calendar and penalties vary in every country, we’ll report the basic rules and conditions for the main ones.

By staying more than 6 months in Germany (not necessarily in one calendar year), a tax residence in the country is automatically created. The deadline to file a tax return in Germany is May 31st. Failing to file it on time can be subject to penalties up to 10% of the due tax.

United Kingdom
The deadline to file your tax return in UK is May 31st, you will get a penalty of £100 up to 3 months late. Further delay will cause a bigger penalty and interests.

The deadline to file your tax return in Italy is October 31st. A fixed penalty of €25 is applied up to 3 months of late filing. If your tax return is not submitted after 3 months a penalty of a value between 120% and 240% of the due VAT is applied.IrelandOctober 31st is the deadline to file your Irish tax return. Failure to meet the deadline brings to a tax audit, namely an increase of 5% up to 2 months of late filing. After 2 months the rise is 10%.

The deadline to file a tax return in Austria is April 31st. Failing to file it on time can be subject to penalties up to 10% of the due tax.

Czech Republic
Tax return in Czech Republic must be filed before March 31st. Penalties are on a daily basis: 5 per mil of the tax return for each day of late filing. The amount will be deducted from your tax refund, in case you are not entitled for it the penalties will be applied to your bonuses (such as your child benefits), but won’t exceed a total of 5% of them.

As for the US, fail to file the tax return is punished by law even harder than fail to pay your debts to the IRS. You can find all the informations you need in this regard in our article about the penalties for not filing your USA tax return.

For more informations please do not hesitate to contact us.
You can use our free calculators to have an esteem of your tax situation.