As you know you can earn some extra money by completing surveys .
Up to a few hundred US dollars a month if you use several of the top 10 best paid survey sites !
And you may have been doing a good job with that, but well… do you actually have to pay tax on this? And if so how much and how?
We will answer those questions for you.
Yes. That is the short and perhaps somewhat disappointing answer. In the Netherlands, you always have to pay tax on your income from all types of 'work'. Whether this is salaried employment such as your daytime job, a side job or money that you receive via the internet. As soon as you get paid for a product, service or action, it counts. Even tips if you work in the hospitality industry, for example.
It is also important that this concerns income from activities, including those via the Internet as designated by the Tax Authorities. There are also ways of “making money” that are not covered, more on that later.
In any case, completing surveys against payment falls under that heading, just like other ways that you will find on our site. All 6 reliable methods we recommend are even covered, isn't it? But keep in mind that for the tax you pay you also get a lot back in the Netherlands in social insurance and provisions! Care, education, infrastructure and so on.
Okay, so we all have to pay tax on our online income, but how much do you spend on that? We cannot really give the answer to this question very concretely because it also depends on your other wages / salary or other types of income.
The easiest thing to explain is that you simply have to add up all of your income for the income tax. If you earn money with surveys by participating in surveys in addition to a paid job, then you add those earnings to it. Subsequently, a certain rate is charged via the tax brackets.
Because we then calculate that the income from surveys is the extra bit at the top, it means that you pay the highest rate that your income ends up in. Say this normally falls to 40% or 50% (rounded) . That sounds like a lot, but it is still worth it!
NB: even if you have your rewards paid out in gifts or coupons (or via PayPal), you should state this on your tax return. You just have to add up the value of the gifts or coupons. If no real value is given, you have to estimate it realistically. This is called earnings in kind.
The latter also applies to the site where you can 'shop' with your earned points. With some websites you can not only exchange gifts for your points but even spend them at external webshops such as Bol.com
When you start your annual tax return, you will now see all of this pre-filled in. That makes a difference. First you still need to check your income from employment. Then you will be asked about income from home, benefits and pensions. Finally, income from other activities is asked.
In addition, you must state your rewards paid for the surveys that you have completed throughout the year. Pay attention! Only what has actually been paid out , then, does it officially count as income.
You will also be asked whether you have incurred costs for carrying out these activities. You can deduct this from your income, so that you pay less tax . This may sound strange, but it is certainly not!
After all, completing surveys also costs you internet and electricity… so it is best to state something for that as costs. That simply saves you some money. Not all your electricity, your entire internet subscription or your entire mobile data bundle, of course, but a small part is only logical. The Tax and Customs Administration is not going to be difficult about that.
You could even argue that you bought a new laptop to do better research. And so include those costs as a deductible item. You will really care about that, but you shouldn't do this too often because that is of course a bit weird.
All ways of making money online therefore fall under income, and you have to pay tax for it. But there is an exception and we do not mean that you should simply withhold your income (undeclared work): investing is not seen by the government as an income.
This is because technically it is not a way of making money, because you do not deliver something in exchange for a sum of money. So you do not perform any work (activities).
This means that profit from investing does not cost you income tax. It is still subject to the wealth tax, but that applies to all your assets and savings!