Please note: The algorithm descriptions in English have been automatically translated. Errors may have been introduced in this process. For the original descriptions, go to the Dutch version of the Algorithm Register.
Invitation to file income tax (IH) return
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use
General information
Theme
Begin date
Contact information
Link to publication website
Link to source registration
Responsible use
Goal and impact
Every year, the Inland Revenue assesses which citizens are required to file income tax (IH) returns. Those who meet the conditions will receive an invitation to do so. This invitation entails a legal obligation to file a tax return.
In addition, there are citizens who are presumed to be entitled to a refund. In those cases, there is no obligation to file a return, but it may be beneficial to do so. This assessment too takes place within the same process, but does not lead to an invitation.
The purpose of the algorithm is to automatically determine whether a citizen has an obligation to file a tax return. This is done on the basis of predefined selection rules and data from different administrations.
The assessment uses several components that:
- Determine the citizen's income and tax situation;
- Check whether an obligation to declare applies;
- Record the obligation to declare and substantiation administratively;
- Collect the necessary data for the assessment.
Considerations
The Invitation to file process is important for informing citizens in a timely and correct manner about their obligation to file a tax return or possible refund. We want to do this carefully. The algorithm can support a Tax Administration employee in this process. As a result, the assessment is more careful, efficient and uniform.
The algorithm contributes to the systematic and accurate checking of tax data. By using an algorithm, these assessments can be processed faster. As a result, citizens can get clarity faster.
The algorithm determines the assessment based on the relevant data.
The alternative is for an employee to manually collect and assess the data in all cases. This would make the process more error-prone and less efficient.
Human intervention
Human intervention in the Tax Administration context implies that a competent and knowledgeable employee plays a substantial role in decision-making.
Human intervention is involved in the operation of the algorithm, but decisions are also made by the algorithm. The algorithm detects, selects and makes decisions on whether or not to send an invitation to file a tax return.
Risk management
A major risk with this algorithm is that taxpayers may wrongly receive no invitation to file a tax return, even though they are obliged to do so. This could lead to them failing to meet their tax obligations, possibly without their knowledge.
To mitigate this risk, the selection criteria are carefully drawn up and based on up-to-date data. In addition, the rules are reviewed periodically and adjusted where necessary.
Legal basis
- General State Tax Act:
- General Administrative Law Act:
- General Data Protection Regulation:
- General Data Protection Regulation Implementation Act:
- Payroll Tax Act 1964:
- Income Tax Act 2001:
- Citizen Service Number (General Provisions) Act:
- Archives Act 1995:
Links to legal bases
- Algemene wet inzake rijksbelastingen: : https://wetten.overheid.nl/BWBR0002320/
- Algemene wet bestuursrecht: : https://wetten.overheid.nl/BWBR0005537/
- Algemene verordening gegevensbescherming: : https://eur-lex.europa.eu/legal-content/NL/TXT/HTML/?uri=CELEX:32016R0679
- Uitvoeringswet algemene verordening gegevensbescherming: : https://wetten.overheid.nl/BWBR0040940/
- Wet op de Loonbelasting 1964:: https://wetten.overheid.nl/BWBR0002471/
- et Inkomstenbelasting 2001:: https://wetten.overheid.nl/BWBR0011353/
- Wet algemene bepalingen Burgerservicenummer:: https://wetten.overheid.nl/BWBR0022428/
- Archiefwet 1995: : https://wetten.overheid.nl/BWBR0007376/
Elaboration on impact assessments
The use of the data should be assessed against the AVG.
The AVG prescribes that no more data should be used than necessary. This is called data minimisation. The Inland Revenue regularly reviews whether the data used is still necessary and therefore may be used.
Operations
Data
- Personal data taxpayer
- Income data
- Tax data/contra information
- Data from previous income tax returns (financial data e personal data)
- Healthcare costs indication
- Payroll tax
- Indicator VIP status
- Age (state pension)
- Residence status (domestic or foreign tax liability)
Links to data sources
- Persoonsgegevens belastingplichtige: Basisregistratie Personen (BRP)
- Inkomensgegevens: Belastingdienst, historische aangiften
- Fiscale gegevens/ contra-informatie: Belastingdienst
- Gegevens uit voorgaande aangiften inkomensheffing (financiële gegevens en persoonlijke gegevens): Belastingdienst
- Indicatie zorgkosten: Aangiftegegevens voorgaande jaren
- Loonheffing: Belastingdienst
- Indicator VIP-status : Belastingdienst
- Leeftijd (AOW): BRP
- Verblijfsstatus (binnenlands of buitenlandse belastingplicht): BRP/IND
Technical design
The algorithm consists of selection rules created by content experts based on laws, regulations and experience.
The algorithm is not self-learning. This means that it does not develop itself during use.
The algorithm automatically assesses whether a citizen is required to file an income tax return. The assessment is based on selected data from different administrations and predefined rules.
The outcome of the algorithm is that the citizen receives an invitation to file a tax return (legal obligation).
Citizens for whom no declaration obligation is established do not receive an invitation. The assessment is fully automated.
Similar algorithm descriptions
- Every year, the Tax Administration receives more than 10 million income tax returns, which must be finalised within three years. Therefore, the Tax Administration uses an algorithm to detect returns containing possible errors.Last change on 6th of May 2025, at 11:38 (CET) | Publication Standard 1.0
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use
- Within the Inland Revenue, we use Mass Correction (MC) for Income Tax returns. MC involves comparing returns with available third-party data. This involves declarations in which there are relatively simple corrections in the citizen's return.Last change on 1st of May 2025, at 15:26 (CET) | Publication Standard 1.0
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use
- The 'Invitation to File Inheritance Tax Returns (UDA-Erf)' algorithm helps Tax Administration employees determine whether heirs are liable to pay inheritance tax.Last change on 17th of January 2024, at 18:17 (CET) | Publication Standard 1.0
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use
- This page contains information about the algorithm 'Selection module IH' for income tax/national insurance contributions returns. The algorithm assesses whether an income tax return can be accepted immediately or must be assessed manually, based on possible risks in the return.Last change on 1st of May 2025, at 11:02 (CET) | Publication Standard 1.0
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use
- Inheritance tax has to be paid on part of the inheritances in the Netherlands. This requires the heirs to file an inheritance tax return. The amount of the tax depends on the size of the inheritance, the number of beneficiaries and the relationship between testator and beneficiary.Last change on 5th of February 2025, at 14:12 (CET) | Publication Standard 1.0
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use