taxes

All you need to know about the income tax declaration 2023 (Inkomstenbelasting) in the Netherlands.

1. What is the income tax declaration?

It is the tax paid on income earned during a fiscal year, which starts on January 1st and ends on December 31st; whether it is income from employment, business, various sources, etc.

 

2. Am I obligated to file the income tax declaration in the Netherlands?

If you received an invitation letter from the Tax Agency (Belastingdienst), you are required to file the income tax declaration on the date mentioned in the invitation letter, or else you will receive a fine for not doing it on time. In general, the letter may specify that you should submit the declaration between March and April of the year you received the letter.

Please check the complete article on when you are obligated to file the income tax declaration: https://psmconsultancy.nl/en/2023/01/13/income-tax-return/

 

3. What happens if I did not receive the invitation letter, then am I not obligated to file the income tax declaration?

If you did not receive the invitation letter but owe more than 49 euros in taxes (reference for the year 2022) in the income tax declaration, you are obligated to submit the declaration. However, you have up to 5 years to submit it.

 

4. What type of declaration form applies to me?

There are different types of forms: M, P, C, and F. To know which one applies to you:

  • Form M: the year you migrate or emigrate from the country as a resident.
  • Form C: if you are a non-resident throughout the year in the country.
  • Form P: if you are a resident throughout the year in the country.

Please check the complete article on the types of forms in the Netherlands: https://psmconsultancy.nl/en/2023/01/05/4-types-ducth-income-tax-forms/

 

5. When should I file the income tax declaration?

The income tax declaration should be submitted between March and April of the following year. If you have received a letter with a deadline, you must comply with that date mentioned in the letter, or else you will be fined for submitting the declaration late.

 

6. How long until I receive a response?

If you submit your income tax declaration within the specified time, between March and April, on average, you can expect a response before July of that year. However, if you submit your income tax declaration outside of these dates, the resolution of your declaration may take from 6 to 36 months.

 

7. What documents should be presented for the 2023 income tax declaration? (Between March and April 2024)

There are several documents that both individuals and self-employed individuals (known as “eenmanszaak” in Dutch) should take into account.

Please check the complete article for more details: https://psmconsultancy.nl/en/2023/01/10/documents-income-tax-netherlands/

 

8. What are the deductible expenses for individuals in the income tax declaration?

  • Health:

    • Disability
    • Costs not covered by health insurance (own risk – eigen risico)
  • Own House:

    • Mortgage interest and debt
    • Expenses for property purchase
  • Education:

    • The deduction of education expenses was eliminated for 2022.

Please check the complete article on subsidies or aid available in the Netherlands: https://psmconsultancy.nl/en/2023/01/13/types-allowances-netherlands/

    • Donations:

      • Ordinary >60€
      • Periodic has no limits.
    • Transport:

      • Transportation expenses in case your employer does not pay for it.
      • You must live more than 10KM away from your company.

 

9. What tax credits (heffingskorting) exist and how are they applied in the income tax declaration?

There are several tax credits such as:

a) General tax credit (Algemene heffingskorting) b) Employee discount for employees (Arbeidskorting) c) Income-dependent combination discount (Inkomensafhankelijke combinatiekorting) d) Tax credits for AOW beneficiaries (Heffingskortingen voor AOW-gerechtigden) e) Disabled young person discount (Jonggehandicaptenkorting) f) Lifetime leave discount (Levensloopverlofkorting) until 2022 g) Green investment tax credit (Heffingskorting voor groene beleggingen)

Please check the complete article on tax credits in the Netherlands: https://psmconsultancy.nl/en/2022/01/25/tax-credits/

 

10. What is the 30% ruling benefit in the Netherlands, and who can apply for it?

If you come to work in the Netherlands from another country, your employer can choose to pay you 30% of your salary, including extraterritorial expenses, tax-free. This benefit is called the 30% ruling. You also have tax benefits in the income tax declaration.

Please check the complete article on tax credits in the Netherlands: https://psmconsultancy.nl/en/2022/07/30/30-ruling-in-the-netherlands/

 

11. What is the Payroll Tax Credit (Loonheffingskorting), and how does it apply if I have more than one job in the Netherlands?

A tax credit is a discount on your income tax and national insurance contributions. If you work as an employee, your employer takes into account the general tax credit (algemene heffingskorting) and the employee tax credit (arbeidskorting) in your payroll. These discounts are called payroll tax credits (Loonheffingskorting). In other words, you pay less payroll taxes and receive more salary. If you work as an employee, you are entitled to a discount on your taxes, but it should only apply to one job during the year.

Please check the complete article on tax credits in the Netherlands: https://psmconsultancy.nl/en/2022/02/01/the-payroll-tax-credit/

 

12. What is the unsolicited 2024 tax assessment (Voorlopige Aanslag 2023), why do I receive it, and what should I do?

The tax authorities (Belastingdienst) estimate in advance, based on your income from two years ago, i.e., the year 2024, how much income tax you will have to pay in the year 2024. That’s why they send you a provisional assessment for 2024 in January 2024. This is a mandatory invitation. The advantage you have is that when the provisional assessment for 2024 is sent, you would pay less taxes in the income tax declaration 2024 (which is done between March and April 2024), as you already paid the taxes in advance (only in case you owe taxes).

Please check the complete article for more details: https://psmconsultancy.nl/en/2024/01/08/provisional-tax-assessment-2024/

 

Source : Belastingdienst

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1
Declaracion provisional 2024 D

Provisional tax assessment 2024 (Voorlopige Aanslag)

1. About the Invitation

Tax authorities (Belastingdienst) estimate in advance, based on your income from two years ago, i.e., the year 2022, how much income tax you will have to pay in the year 2024. That’s why they send you a provisional assessment for 2024 in January 2024.

This is a mandatory invitation. The advantage you have is that when the provisional assessment for 2024 is sent, you would pay less taxes in the 2024 income tax return (filed between March and April 2024) since you already paid taxes in advance (only if you owe taxes).

 

2. It may seem strange that you already have to pay taxes for 2024.

Nevertheless, it’s not that crazy because many people already pay taxes in the current fiscal year.

If you receive wages or benefits, your employer or benefits agency withholds taxes every month and pays it to the Tax Authorities (Belastingdienst) on your behalf.

3. Do you have income besides wages or benefits? Or do you have assets like savings or stocks?

In that case, you will also start paying taxes in the same year with a provisional assessment for 2024.

 

4. You should check if the provisional assessment for 2024 is correct.

a. If you owe taxes, you can choose to pay in installments:

 

You can pay in a maximum of 11 installments.

– The amount of the 1st installment must be received by the Tax Authorities before March 1, 2024, and each installment must be paid every month on the same day as the first installment.

– If the total amount is in the Tax Authorities’ account before March 1, 2024, you will receive a discount.

b. If the data in your provisional assessment for 2024 is incorrect:

 

You can change the provisional assessment for 2024; contact us for more informacion: info@psmconsultancy.nl

 

Source: Belastingdienst (Tax Authorities).

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst

Patricia Santa Cruz
Tax advisor

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

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0
2 (2)

Reduction of the 30% ruling benefit in the Netherlands starting from 2024

What does the 30% ruling entail?

The 30% rule is a tax scheme that allows, under strict conditions, up to 30% of the salary to be tax-free for employees hired from abroad. These employees typically face additional costs known as extraterritorial costs.

  • You are a salaried employee. You were hired outside the Netherlands by a Dutch company.
  • You have specific or highly qualified expertise that is either scarce or in low supply in the Dutch job market, meaning you are considered a skilled migrant.
  • Reside more than 150km from the Dutch border for more than 16 out of the 24 months preceding your first working day in the Netherlands.
  • Workers from Belgium and Luxembourg, for example, are excluded from the scheme in any case.
  • If you want to apply for the scheme from the first working day, make sure that the Dutch tax authorities (Belastingdienst) receive the application to apply for the scheme within four months after the first working day.
  • The taxable income of an employee must exceed 46,107 EUR gross per year (in 2023, the figure was 41,954 EUR).

  • For an employee under 30 years old with a master’s degree, their taxable income must be higher than 35,048 EUR gross annually (in 2023, it was 31,891 EUR).

  • The application will be limited to a maximum salary of 233,000 EUR, determined by the High Incomes Standard Act (WNT standard), also known as the Balkenende standard.

  • This standard establishes a maximum salary limit to which certain tax benefits, such as the 30% ruling, can be applied.

  • Recently, the Dutch parliament approved significant changes to the 30% ruling regime. It should be noted that currently, an employee can receive a tax-free reimbursement of 30% of their gross salary for 5 years.

  • On October 26, 2023, the Dutch House of Representatives recently decreased the 30% ruling in the Tax Plan 2024 in two additional aspects:

Progressive reduction of the 30% ruling:

  1. Starting from 2024, the updated regulations will no longer guarantee a total reimbursement of 30% over the 5-year period (60 months). The plan will allow its unchanged application during the first 20 months, enabling the payment of 30% of the gross salary as a tax-free expense reimbursement. During the next 20 months, you will only be able to receive 20% of the gross salary tax-free, and in the last 20 months, only 10% tax-free.

2. From 2025, expatriates will be obliged to pay taxes in boxes 2 and 3, even for those currently benefiting from the 30% ruling.

“Box 2” in the Dutch tax declaration focuses on income generated from shareholdings in a company, such as dividends and profits derived from the sale of shares in a company.

“Box 3” includes declarations of balances from bank accounts, investments, and real estate inside and outside the Netherlands, excluding the main residence.

Please note that Changes 1 and 2 have been approved by the Parliament but are still subject to Senate approval. However, it is expected that this will happen in the future.

  • Instead of applying the 30% ruling, an employer has the option to reimburse actual extraterritorial expenses incurred by an employee if this proves more beneficial.
  • To make use of this alternative, the employer must be able to demonstrate the actual occurrence of these costs, and furthermore, they must be individually recorded in the payroll administration.
  • Opting for the reimbursement of current extraterritorial costs can be an excellent choice for future expatriates whose costs exceed the 30%/20%/10% of their gross salary. The decision to reimburse these actual extraterritorial expenses must be made in the first payroll period of the calendar year and applied for the entire year.
  • From the year 2024, more stringent requirements will be implemented for the 30% ruling regime, allowing employers to pay a portion of the salary tax-free under specific circumstances.
  • These adjustments aim to simplify the system but, at the same time, establish specific salary limits.
  • The changes in the regulation of the 30% ruling in the Netherlands have a substantial impact on expatriates and their employers, influencing both tax responsibilities and payroll management.
  • According to calculations, it is expected that the savings resulting from these modifications will increase from 3 million euros in 2025 to a substantial amount of 194 million euros in 2029 and beyond.
  • The proposal involves using the freed-up funds to decrease student loan interest.
  • As a consequence of these changes to the 30% ruling regime, employees will face higher personal income taxes.
  • This situation will not only increase the tax burden on expatriates but will also significantly complicate their tax declarations.

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst.

Patricia Santa Cruz
Asesor fiscal

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

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prinsjesdag 2023

Main tax measures announced in Prinsjesdag 2023 Benefits for self-employed and personal

(A) Taxes

Prinsjesdag 2023 is an annual event in the Netherlands marked by the King WillemAlexander  speech presenting government policies and plans for the next year. This day also includes the royal procession and is crucial for setting the political and fiscal agenda in the Netherlands. On September 19, 2023, the government presented its policy proposals for the coming year.

Do you sell beer, wine, or other alcoholic beverages? The special tax on beer, wine, and other alcoholic beverages will increase by 16.2% starting January 1, 2024.

  • The price of a case of beer will increase by €0.50. That’s €0.02 per bottle.
  • A bottle of wine will become more expensive by an average of €0.13.

For whom?

  • Alcohol sellers
  • Alcohol producers
  • Alcohol importers

The SME profit exemption for small and medium-sized enterprises will be reduced in 2024. Are you self-employed or an SME entrepreneur? Are you considered a business entity for income tax purposes? You will pay more taxes in 2024 on the profits you have earned. Then, subtract 12.7% of the SME profit exemption from your income tax return. This used to be 14%.

For whom?

  • Self-employed individuals and SME entrepreneurs who pay income tax and, therefore, have a legal form without legal personality (e.g., sole proprietorship, general partnership, limited partnership)

Are you entitled to the self-employed deduction? The amount you can deduct from your earnings has been decreasing each year since the law changed in 2022. In 2023, the self-employed deduction will be €5,030. In 2024, the self-employed worker’s deduction will be reduced to €3,750. You pay more taxes if the self-employed deduction decreases.

The amount of the self-employed deduction in the following years is as follows:

  • 2024: 3.750€
  • 2025: 2.470 €
  • 2026: 1.200€
  • 2027: 900€

For whom?

  • Self-employed workers eligible for the self-employed deduction

What’s changing?

Are you a business entity for income tax purposes? The discount on the payment of provisional Income Tax (ib) will disappear. You will no longer receive a discount if you pay your provisional tax settlement in a lump sum (instead of in instalments) before the final payment date of the first payment period. This change is expected to take effect on January 1, 2024.

The tax-free travel allowance will increase from €0.21 to €0.23 per kilometre on January 1, 2024.

Are you self-employed? Then you can deduct this amount per kilometre from your earnings if you are a business entity for income tax purposes.

Are you an employer? You can reimburse employees’ travel expenses tax-free. This also applies to travel expenses on public transportation. And for taxi, boat, or plane expenses. As long as this is reasonable.

You can grant your employees a tax-free travel allowance exceeding €0.23 per kilometre. This additional increase is considered the employee’s salary. You can designate the additional increase as a final wage rate through the labour cost system (WKR). This way, the additional increase becomes tax-free.

The tax-free travel allowance is not for entrepreneurs who reimburse their employees for the cost of a company car or bicycle.

For whom?

  • Employers reimbursing their employees’ travel expenses
  • Self-employed individuals using travel expenses as a deductible expense

What’s changing?

Do you sell non-alcoholic beverages such as soft drinks and fruit juices? The consumption tax on these beverages will increase. Starting January 1, 2024, the consumption tax on these non-alcoholic beverages will increase to €26.13 per 100 litres (hectolitre).

As of January 1, 2024, mineral water and milk will no longer be included in these non-alcoholic beverages. There will be no consumption tax on mineral water and milk from that date.

For whom?

  • Entrepreneurs selling non-alcoholic beverages, such as soft drinks and fruit juices
  • Entrepreneurs selling mineral water and milk

What’s changing?

Are you a business entity for income tax purposes? The tax rate for Box 3 Income Tax will increase from 32% to 34% starting January 1, 2024. This is one year earlier than initially proposed. The rate in 2024 would initially be 33%. In 2025, it will remain at 34%.

The tax-free threshold for Box 3 will remain at €57,000 in 2024. For fiscal partners, it’s €114,000. The tax-free deduction would first increase (indexed) to €62,643.

For whom?

  • Entrepreneurs for income tax
(B) Personal

What’s changing?

Are you an employer? And are you hiring a foreign employee with special skills or knowledge? You can no longer reimburse the additional costs your employee incurs due to the tax-free move to the Netherlands indefinitely. Starting now, you will also need to report each year to the Tax Authorities how you want to reimburse these extraterritorial costs.

This is an adjustment to the current 30% rule. Soon, you can reimburse the costs by paying 30% of the tax-free salary. The compensation itself is included in that 30%. There is no need to specify the costs your employee has actually incurred.

Starting January 1, 2024, there will be a maximum amount for this option. You can reimburse the costs up to a maximum of 30% of the Higher Incomes in the Public and Semi-Public Sector Act (WNT) for higher salaries. This amount is determined each year.

Your employee must meet the conditions of the 30% rule. And you must register your employee with the Tax Authorities as a user of the 30% facility.

For whom?

  • Employers allowing a foreign employee with special skills or knowledge to come to the Netherlands. This change is expected to take effect on January 1, 2024.
(C) Childcare

What’s changing? Do you work in childcare? Childcare can be offered in various languages. Multilingual childcare in German, English, or French will be allowed. A maximum of 50% of daily care time can be provided in a multilingual setting.

For whom?

Entrepreneurs working in childcare. This change is expected to take effect on January 1, 2024.

(D) Tax Plans for Sole Proprietorships

Your income in Box 1 is taxed in two brackets. In 2024, you will pay 36.97% income tax on your earnings up to €75,624. This is 0.04 percentage points higher than in 2023. Next year, just like in 2023, you will pay 49.5% income tax on your income over €75,624. AOW beneficiaries are subject to an adjusted first bracket.

In previous years, the bracket limits increased with the inflation rate. This year, the increase is 3.55%, which is less than the inflation rate of 9.9%. This means that you are more likely to pay the higher tax rate in the second bracket.

If you own 5% or more of a company’s shares, you have a “substantial interest.” You may receive a profit distribution or dividend. In 2023, you paid a tax rate of 26.9%. In 2024, dividends received from a substantial interest will be taxed in a two-bracket system. You will pay 24.5% income tax on earnings up to €67,000. Beyond that, the rate is 31%.

In 2024, you will pay less tax in Box 2 for-profit distributions up to approximately €106,000. You will pay more tax for larger profit distributions in 2024 than in 2023. It may be interesting to distribute saved profits from your company in 2023. Consult with your advisor. Note that after receiving a dividend, you will have private money and investments. This becomes capital in Box 3. In Box 3, there is a tax-free capital of €57,000. If the value exceeds this exemption, you will pay tax on it in Box 3. Consult with your advisor about the best course of action in your situation.

Do you have savings or investments? Then you will not pay tax on your wealth up to €57,000 in 2024. If you have more, you will pay 34% tax on the returns you have obtained. Returns refer to the yield from savings and investments. The government calculates a fixed return rate for investments at 6.04% in 2024. The return on savings is determined later. As of January 1, 2023, money in third-party accounts with a notary or bailiff also counts as savings. This also applies to owners’ participation in the assets of a homeowners’ association (VVE).

Debts are also included in Box 3. The costs of your debts are deducted from the yield of your assets. The costs of your debts are charged at a fixed interest rate. You cannot deduct a fixed amount from your debts. That is the debt threshold. The debt threshold and interest rate will be determined later.

From 2024 onwards, it will no longer be necessary to declare mutual claims and debts between fiscal partners or between parents and minor children.

The SME profit exemption is reduced. The SME profit exemption reduces your taxable profit after business deductions. The percentage will decrease from 14% to 12.7% in 2024. Entrepreneurs with high profits will be affected the most.

Do you work at least 1,225 hours in your business? Then you are entitled to the self-employed deduction. The self-employed deduction will be reduced by €1,280 in 2024, resulting in a deduction of €3,750. In the coming years, the self-employed deduction will continue to decrease to €900 in 2027.

The tax-free travel allowance will increase from €0.21 to €0.23 per kilometre on January 1, 2024. As an entrepreneur, you can deduct this amount from your business travel expenses for using your private car, motorcycle, or bicycle. As an employer, you can also reimburse your employees at the rate of €0.23 per kilometre tax-free for business trips using their own mode of transportation, including daily commutes.

Source: KVK (Chamber of Commerce), Belastingdienst

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst

Patricia Santa Cruz
Tax Advisor

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

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comerciales 3

Overview of possible deductible business expenses

View which part of your business costs you may deduct for each type of costs.

Type of costs

What part of the costs is deductible?

Explanation

Workspace at home

0%, with exceptions.

Use our tool to determine whether the costs for your workspace in your home are deductible.

Business gifts in the form of food, drinks and stimulants

There is a threshold of €5,100 in 2023. In 2022 the threshold will be €4,800. In 2021 the threshold is €4,700.

Instead of this threshold, entrepreneurs may deduct 80% of these costs in their tax return. This percentage also applies to those who have income from other work. The percentage of 73.5% applies to entrepreneurs for corporate tax.

Food, drinks and stimulants that you use privately are not deductible.

The item ‘food’ includes business lunches and dinners (including tips).

When you think of ‘drinks’, think of coffee, tea, milk and soft drinks.

By ‘stimulants’ we mean, among other things, cigarettes and cigars.

Representation, conferences, seminars, study trips
(including travel and accommodation costs)

There is a threshold of €5,100 in 2023. In 2022 the threshold will be €4,800. In 2021 the threshold is €4,700.

Instead of this threshold, entrepreneurs may deduct 80% of these costs in their tax return. This percentage also applies to those who have income from other work. The percentage of 73.5% applies to entrepreneurs for corporate tax.

‘Representation’ includes the costs of receptions. Business gifts also generally fall under ‘representation’.

You may deduct a maximum of € 1,500 for travel and accommodation costs. Was it necessary for your work to attend a conference or the like? Then this maximum does not apply.

Home telephone subscription

0%

 

Business phone calls at home

100%

 

General literature

0%

 

Professional literature

100%

 

Work clothes

100%

Work clothing is clothing that you can wear (almost) exclusively in the context of your company. This must be evident from the external characteristics of the clothing, for example: a uniform or overalls.
Is the clothing also suitable to wear outside your company? Then the clothing must have a logo with an area of ​​at least 70 cm2. The logo must refer to your company.

Clothing (not work clothes)

0%

 

Personal care

0%

 

Briefcases etc

100%

 

Equipment and instruments that are not part of the company’s assets

0%

 

Relocation

limited

 

Double housing

limited

 

Fines

0%

 

Company car

limited

 

Business costs of own car

A fixed amount of € 0.21 per kilometer. In 2022 and 2021 this amount was €0.19.

 

Business travel costs for public transport, taxi and plane

100% of the actual costs incurred

You must be able to prove that you have actually incurred these costs. For example, keep your train ticket. Are you traveling with an OV chip card? Then make a printout of your travels.

Vessels for representative purposes

0%

 

Study costs

The part of the costs you incur to maintain existing professional knowledge

You must incur the study costs in the interest of your company. The costs are only deductible if you incur them to maintain existing professional knowledge. If you incur costs to acquire new knowledge, the costs are not deductible.

Source: Belastingdienst

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst

Patricia Santa Cruz
Tax Advisor

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

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0
Zorg

Everything you need to know about Health insurance subsidy in the Netherlands

1. What is the health insurance subsidy in the Netherlands?

The health insurance subsidy, known as “zorgtoeslag” in the Netherlands, is financial aid provided by the government to help cover the costs of health insurance. This subsidy is intended for individuals with low or moderate incomes to assist them in meeting their healthcare insurance expenses.

 
2. Who is eligible to receive the health insurance subsidy in the Netherlands?

To be eligible for the health insurance subsidy, you must meet certain requirements.

You are 18 years of age or older.
You have Dutch health insurance.
Your income is below the income limit (joint income).
You are a Dutch national or legally residing in the Netherlands.
Your total assets (combined) are not too high.

 
3. What are the income requirements to qualify for the health insurance subsidy in the Netherlands?

In 2023, your income cannot exceed €38,520.00 annually. If you have a subsidy partner, the combined sum of your incomes cannot exceed €48,224.00 per year. Additionally, your total assets (bank accounts, second properties, etc.) must not exceed a certain limit. Starting from January 1, 2023, the individual asset limit is €127,582.00, and if you have a subsidy partner, the combined sum of your assets cannot exceed €161,329.00 in total.

 
4. Who is a subsidy partner (toeslagpartner) in the Netherlands?

A subsidy partner is someone who counts for the subsidy application. This means that both their income and assets are considered for the subsidy application and its receipt. Your subsidy partner can be your spouse or registered partner, or another person registered at the same address. You are not a subsidy partner if you are divorced from your partner or are applying for divorce or legal separation.

You can only have 1 subsidy partner in the following situations:

a) Spouse or registered partner:
If you have a legally married spouse or registered partner, that person is your subsidy partner. Your spouse or registered partner is still considered your subsidy partner even if you are not registered at the same address.

b) Someone registered at your address:
If you are not married or do not have an officially registered partner, but someone is registered at your same address, they can be your subsidy partner. This is the case if any of the following situations apply to you and/or the other person:

Summary of situations:

You have formalized a cohabitation agreement with a civil-law notary.
You have a child in common, or one of you or the registered person at your address has acknowledged the other’s child.
You and the registered person at your address are partners if you share a pension plan.
You jointly own a house in the Netherlands and both live there.
You or the registered person at your address has a child under the age of 18, and this child is registered at your address.
You were already subsidy partners last year.
c) Living in a house with more people:
You can only have 1 subsidy partner. For example, if:

You have a child in common, as in situation 2 of the summary of situations.
Your house is occupied by the owner and another person, as in situation 4 of the summary of situations.
Situation 5 from the summary of situations applies only if you live with another adult and at least one underage child.
d) Your child or parent lives with you:
If you live with your child, stepchild, parent, or stepparent, then that person is your subsidy partner if any of the situations mentioned in the summary of situations apply. However, in that case, you are only subsidy partners if both of you are 27 years of age or older at the beginning of the year.

e) Living with your brother, sister, grandparent, or grandchild:
Then that person is your subsidy partner if any of the situations mentioned in the summary of situations apply.

 
5. What is the maximum income limit that I, as a single individual or with a subsidy partner, must have in order to be eligible for the annual medical care subsidy?

In order to be eligible for the medical care subsidy, your annual income must not be excessively high. If you have a subsidy partner, your partner’s income is also taken into account. Qualified incomes are considered for subsidy eligibility and roughly refer to your gross income.

 
Year Maximum income without subsidy partner Maximum combined income with subsidy partner
2023 38,520 € 48,224 €
2022 31,998 € 40,944 €
2021 31,138 € 39,979 €
2020 31,481 € 38,945 €
2019 29,562 € 37,885 €
 
6. If you haven’t used Dutch health insurance throughout the year, can you apply for health insurance subsidy in the Netherlands?

In general, the fact that you haven’t used your health insurance throughout the year does not constitute a criterion for applying for a health insurance subsidy (zorgtoeslag) in the Netherlands. The subsidy is solely determined based on your income and having Dutch health insurance.
It is always recommended to utilize health insurance to take care of your well-being and not compromise your health.

 
7. If you are not a Dutch citizen, can you receive a health insurance subsidy in the Netherlands?

If you come to live or work in the Netherlands and are required to take out health insurance in the Netherlands, you can receive a health insurance subsidy to help make your health insurance affordable.

 
8. How to apply for health insurance subsidy in the Netherlands?

PSM Consultancy BV provides services for applying for health insurance subsidy. We do not require access to your DigiD to process the application since we are registered advisors. We simply need you to provide certain personal data to prepare your application. If you would like to receive a quote for these services, please contact us at info@psmconsultancy.nl.

 
9. How much money can you receive through health insurance subsidy in the Netherlands?

The higher your income, the lower your health insurance subsidy will be. In the table below, you can see how much you will receive per month as a single person without a subsidy partner (toeslagpartner) in 2023.

Income year 2023

Subsidy per month in 2023

25.000 €

154 €

25.500 €

149 €

26.000 €

144 €

26.500 €

138 €

27.000 €

132 €

27.500 €

127 €

28.000 €

121 €

28.500 €

115 €

29.000 €

110 €

29.500 €

104 €

30.000 €

98 €

30.500 €

93 €

31.000 €

87 €

31.500 €

81 €

32.000 €

76 €

32.500 €

70 €

33.000 €

64 €

33.500 €

59 €

34.000 €

53 €

34.500 €

47 €

35.000 €

41 €

35.500 €

36 €

36.000 €

30 €

36.500 €

24 €

37.000 €

19 €

37.500 €

13 €

38.000 €

7 €

38.500 €

2 €

mayor de  39.000 €

You will not be eligible for a health insurance subsidy.

 
10. How much money can you receive through the medical insurance subsidy in the Netherlands when you have a subsidy partner?.

The more you or your partner earn, the lower your medical insurance subsidy will be. In the following table, you can see how much you will receive per month with a subsidy partner (toeslagpartner) in 2023.

Total combined income with subsidy partner in the year 2023 Monthly subsidy for subsidy partners in 2023
25.000 €    265 €
25.500 € 260 €
26.000 € 254 €
26.500 € 248 €
27.000 € 243 €
27.500 € 237 €
28.000 € 231 €
28.500 € 226 €
29.000 € 220 €
29.500 € 214 €
30.000 € 209 €
30.500 € 203 €
31.000 € 197 €
31.500 € 192 €
32.000 € 186 €
32.500 € 180 €
33.000 € 175 €
33.500 € 169 €
34.000 € 163 €
34.500 € 157 €
35.000 € 152 €
35.500 € 146 €
36.000 € 140 €
36.500 € 135 €
37.000 € 129 €
37.500 € 123 €
38.000 € 118 €
38.500 € 112 €
39.000 € 106 €
39.500 € 101 €
40.000 € 95 €
40.500 € 89 €
41.000 € 84 €
41.500 € 78 €
42.000 € 72 €
42.500 € 67 €
43.000 € 61 €
43.500 € 55 €
44.000 € 49 €
44.500 € 44 €
45.000 € 38 €
45.500 € 32 €
46.000 € 27 €
46.500 € 21 €
47.000 € 15 €
47.500 € 10 €
48.000 € 4 €
48.500 € and more No recibirás ningún subsidio sanitario.

  

11. When is the health insurance subsidy paid in the Netherlands?

The health insurance subsidy is generally paid monthly, into the bank account you provided during the application. The exact payment date may vary, but it is usually around the 20th of each month.

 
12. How much money can you receive through the medical insurance subsidy in the Netherlands when you have a subsidy partner?

Yes, you can provide information for either a Dutch or foreign bank account to receive the subsidy. If it’s your first time receiving the subsidy, you will need to update the account information once, or if you change your bank account, you will need to update it again.

You can make the change online using your DigiD.
If you have a Dutch bank account or by postal mail if you have a foreign bank account or don’t have a DigiD.
You can contact PSM Consultancy BV if you need information on how to update your bank account by emailing info@psmconsultancy.nl.

 
13. How is the health insurance subsidy adjusted in the Netherlands if my income, family situation, or health insurance is changed?

If your income, family situation, or health insurance changes during the year, it is important to inform the relevant authorities. The health insurance subsidy can be adjusted accordingly to reflect your new financial situation.
PSM Consultancy BV provides services for updating health insurance subsidy. You can contact us at info@psmconsultancy.nl.

 
14. What would happen if you don’t report changes in your income, family situation, or cancellation of health insurance to the subsidy department after applying for the subsidy in the Netherlands?

Not reporting changes could have negative consequences. Some possible repercussions are as follows:

a) Overpayment
If your income increases and you don’t report it, you may continue receiving the same level of subsidy as before. This could result in an overpayment by the government, and you may be asked to reimburse the additional amount received.

b) Insufficient subsidy
On the other hand, if your income decreases and you don’t report it, the subsidy you receive may be insufficient to cover your actual needs. This could lead to financial difficulties and a greater financial burden.

c) Penalties
Failing to report relevant changes in your financial or family situation may be considered a violation of the established rules and regulations. As a result, you could face penalties or fines for non-compliance with your reporting obligations.

Therefore, it is crucial to keep the subsidy department informed of any changes in your income or family situation as soon as they occur. This will ensure that you receive the appropriate subsidy and avoid future issues related to the health insurance subsidy in the Netherlands.

 
15. Can you get a health insurance subsidy if you are going to study in the Netherlands?

This depends on whether you are also working or doing an internship alongside your studies. The following situations exist:
a) If you are only studying: If you come to study in the Netherlands and do not have a part-time job in addition to your studies, you cannot receive a health insurance subsidy. This is only possible if you are required to take out Dutch health insurance.

If you come to the Netherlands for your studies, you will still be insured for medical expenses in your home country. Therefore, you are not obligated to take out Dutch health insurance.

b) If you work or do an internship:
If you have a part-time job in addition to your studies or receive an internship subsidy, then you may be required to take out Dutch health insurance. If you have Dutch health insurance, you can receive a health insurance subsidy in the Netherlands.

c) Temporary student health insurance:
In this case, you cannot receive a health insurance subsidy.

 
16. What is the deadline for submitting the subsidy application in the Netherlands?

The health insurance subsidy application for the year 2022 must be submitted before September 1, 2023. For the health insurance subsidy of the year 2023, the deadline is before September 1, 2024, and so on. It is important to note that retroactive subsidy applications can only be made within the established deadline.
For example, if today is May 20, 2023, and you have paid your Dutch health insurance since October 10, 2021, you can only retroactively apply for the health insurance subsidy for the entire year 2022. It is no longer possible to apply for the health insurance subsidy for the year 2021, as the deadline was before September 1, 2022. You should also consider that when applying for subsidy for two different years (2022 and 2023), you must meet the requirements for each year. The requirement for 2022 is to have an income lower than 31,998.00 EUR, and the requirement for 2023 is to have an income lower than 38,500.00 EUR.

 
17. Is it necessary to submit a subsidy application for each year in which you want to apply for health insurance?

It is not necessary to submit separate applications. You can make a single health insurance subsidy application starting from the year 2022, and the subsidy department will continue applying the subsidy consecutively, year after year, until you request its cancellation. However, it is important to note that if you have different wages each year, you should mention the corresponding wage for each year in your application. If you are unsure of the estimated salary for the year 2023 at the time of application (for example, if today is May 20, 2023), you can provide an estimated salary and, throughout the year, when you know the actual salary, you can request an update.

 
18. After submitting the subsidy application, when will you receive a response?

Generally, the timeframe can range from 5 weeks up to a maximum of 13 weeks, after which it will be determined if you are eligible to receive the subsidy and the amount you will be granted.

Note: It is important to consider that the subsidy requirements may vary each year. This article is based on the requirements for the year 2023, but there may be changes and variations every year that you should review and take into account.

Source: Toeslagen

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst

Patricia Santa Cruz
Tax Advisor

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

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PSM-VIDEO-Income tax PORTADA

Income tax return (Inkomstenbelasting) and tax deductions

It is the tax paid on income received during a fiscal year, which begins on January 1 and ends on December 31; whether it is income from employee, self-employee, other income, etc.

 

INCOME TAX RETURN

 

Do I have to file the Dutch Income Tax return?

If you received a declaration letter from the Dutch Tax Authorities (Belastingdienst), you are obliged to file the income tax return on the date mentioned in the letter, otherwise you will receive a fine for not doing it on time. In general, the letter may mention that you must send the declaration between March and April of the year to declare.

 

What happens if you did not receive the declaration letter, then do I have to declare the income tax return?

If you did not receive the invitation letter, but you must pay more than 49 euros in taxes (reference for the year 2021) in the income  tax return, you are obliged to send the declaration. However, you have up to 5 years to send it. 

 

What type of declaration form applies to me?

There are different types of tax forms: M, P, C and F-Form, if you wnat tio know which one corresponds to you, check the following link:: 

https://psmconsultancy.nl/en/2022/07/15/4-types-ducth-income-tax-forms/

 

When should I file the income tax return?

The income tax return must be sent between March and April, of the year following the one you wish to declare. If they have sent you a declaration letter with a deadline, you must meet that date mentioned in the letter, otherwise you will be fined for filing late.

 

How long can it take until I have an assessment of income tax return?

If you send your income tax return within the stipulated time, between March and April, on average you can receive a response before July of that year. But, if you send your income statement outside of those dates, the resolution of your declaration may take up to 36 months.

 

TAX DEDUCTIONS FOR INDIVIDUALS

– From income tax return 2022, study costs and other educational expenses are no longer deductible. You can check if you are eligible for the STAP Budget, check the following article about the different types of subsidies: https://psmconsultancy.nl/en/2022/07/21/types-allowances-netherlands/

If you are self-employed, nothing will change for you, study expenses are business expenses, so you can still deduct them from your company.

– If you incurred many illness or disability costs in 2021, health care costs are only deductible, only if they are above the limit amount.

– If you bought a house for the first time, you should consider the expenses for contracting a mortgage, mortgage interest or loans, periodic land lease payments, etc.

– If you go to work by public transport, you can deduct your travel expenses if you meet certain conditions.

– If you pay alimony for your ex-partner.

– Donations to most charities are deductible

 

DEDUCTIONS FOR SELF-EMPLOYED

 

– Hour criterion: if you work at least 1,225 hours a year for your company.

– Business expenses.

– Small-scale investment deduction.

– Initial deduction.

– Exemption of earnings of SMEs.

 

 

Source : Belastingdienst

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst

Patricia Santa Cruz
Tax Advisor

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

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PSM-VIDEO-ALLOWANCES PORTADA

What types of allowances are in the Netherlands for individuals, families or self-employed?

The Dutch government provides various types of allowances for residents and non-residents in the Netherlands. The benefit system is designed to support people with low incomes by helping them cover basic costs such as rent, health insurance, day care, unemployment, maternity pay, etc. The 2022 allowances are explained below:

INDIVIDUALS

  1. Zorgtoeslag (Health insurance allowance)

The health insurance allowance is a help to the monthly payment of Dutch health insurance. The requirements to apply are as follows: You must be at least 18 years old at the time of submitting the application, you must be paying for Dutch health insurance independently or through the company you work for in the Netherlands, you may or may not be a resident resident, your annual income must be less than 31,998 euros per year. If you have a fiscal partner, the annual salary of both cannot exceed 40,994 euros per year. You can receive a maximum of up to 111.32 euros per month, depending on your income (reference 2022)

– You do not need the Digid for us to request it for you. If at any time any of the requirements change, we must inform the Allowance department to avoid re-calculations that are sometimes not in your favor.

– It is not a requirement to use or not have used health insurance, only the aforementioned requirements are considered.

– Use your insurance if you need it!, since it will not be an impediment when applying for the allowance.

  1. Huurtoeslag (Rent allowance)

The rent allowance is a help to the rental costs of your home, one of the requirements is that the rent may not exceed 763.47 euros of rent including services (electricity, water, etc). If you are a resident and you are under 23 years of age, you can apply for the subsidy. 

It can only be applied if the rent does not exceed 442.46 euros, otherwise, it is the amount that was mentioned at the beginning. You must not have very high savings, that is, each resident must have a maximum of 31,747 euros as of January 1, 2022. If you have a subsidy partner (person who is registered at the same address) they may jointly have assets of a maximum of 63,494 euros at 1 January 2022.

Other requirements: Have the nationality of an EU country, Liechtenstein, Norway, Iceland or Switzerland or need a valid residence permit or work permit. You are 18 years of age or older. Independent accommodation for rent.

3. WW uitkering (Unemployment salary)

If you have been working in the Netherlands for at least 26 of the last 36 weeks and will soon be unemployed, you may be entitled to unemployment salary. You can request the salary from 1 week before your first day that you are unemployed. During the first 2 months you are unemployed, the gross unemployment salary is 75% of your last salary. After that, your profit is 70%. You are entitled to minimum wage unemployment for 3 months or more. The exact duration of your unemployment wages depends on your total work history and when you became unemployed. In general, they give you 1 month of unemployment for each full year of work.

4. Bijstandsuitkering (Welfare benefit or living wage)

If you are temporarily unemployed, have little money to live in the country and are not entitled to other help, such as unemployment salary, then you can apply for social assistance benefit.  

5. Stap budget (Study payment benefit)

An important change was made in the income tax 2022, from this year it will not be possible to deduct study expenses in the income tax, so now people who are employees, self-employed or are looking for a job, They can apply for the study benefit. The maximum amount of the subsidies is 1000 euros per year. Every 2 months a new application period begins (January, March, May, July, September, November). You can apply for benefit for Dutch language studies, among other studies.

 

Source: Toeslagen

FAMILIES

1. Kinderopvangtoeslag (Daycare Allowance)

If your children go to daycare, you can receive an allowance or help with the costs you incur for daycare. It can be requested if you use a kindergarten (kinderopvang) with a registration number (LKR), also you and your partner work (it does not necessarily have to be a stable job) or if you are self-employed or are following an integration course (inburgeringscursus) or a return-to-work program (traject naar werk) or are pursuing an accredited education course (regular high school, MBO, HBO, University, ROC, Vavo, PhD), volunteer jobs do not count. In other words, if you cannot take care of your child every day, due to the aforementioned activities, and you and your child are registered at the same address or, in the case of divorced parents, you must have the child equally, you can request the subsidy. The amount of allowance you will receive depends on the hours you work, the type of daycare, and how many hours you use the daycare.

2. Kindgebonden Budget (Budget for childrens)

The children’s budget is an aid to the expenses of your children up to the age of 18. This budget also depends on the income as a couple. You must not have a capital greater than 120,020 euros as a single person and 151,767 euros as a couple as of January 1, 2022.

3. Kinderbijslag (Family allowance)

The family allowance depends on the age of your child. This amount increases when the child turns 6 and increases again when the child turns 12. The family subsidy is transferred at the end of each quarter (January, April, July and October). For example, as of January 1st, 2021, for children from 0 to 5 years old, the amount of 249.31 euros is paid, children from 6 to 11 years old are paid the amount of 302.74 euros, for adolescents from 12 to 17 years old, the amount of 356.16 euros is paid. .

AUTONOMOS

1. Zelfstandig en Zwanger (Subsidy for self-employed and pregnant businesswomen)

If you are self-employed and pregnant, you can apply for maternity allowance for a period of at least 16 weeks, the same rules apply for the length of leave as a regular employee. It can be requested 6 to 4 weeks before the day after the due date.

2. Studies (Stap budget)

An important change was made in the 2022 income tax return, from this year it will not be possible to deduct study expenses in the income tax return, so now people who are employees, self-employed or are looking for a job, They can apply for the study subsidy. The maximum amount of the subsidies is 1000 euros. Every 2 months a new application period begins (January, March, May, July, September, November).

IMPORTANT NOTE: After the allowance has been approved, if you have any change in your income during the year, change in day care, etc., this change must be reported immediately, so that in this way the allowance that was granted is correct. As long as you meet the requirements, you can keep the allowance on an ongoing basis.

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst

Patricia Santa Cruz
Tax Advisor

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

            FOLLOW US AND CONTACT US!

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PSM-VIDEO-Five steps to register PORTADA

Five steps to register as a freelancer in the Netherlands

STEP 1

You must enter the following link with your Digid

https://www.kvk.nl/inschrijven-en-wijzigen/inschrijven-onderneming-eenmanszaak/

 

STEP 2

You must complete the online form and verify that the information is correct before submitting the pre-registration.

 

STEP 3

After you have completed the pre-registration, you must make an appointment at the Chamber of Commerce (KVK).

https://www.kvk.nl/english/making-an-appointment-at-kvk/online-appointment/

 

STEP 4

During your appointment at the KVK, an advisor will verify your identity, so you must bring your passport or ID

valid identity. The advisor will review if she meets the registration conditions.

 

STEP 5

After they have verified your identity and requirements, you will be asked to make the registration payment, the cost is 51.95 euros in 2022. If you also want to obtain an extract from the company registry, you must pay an additional cost of 15.60 euros.

You pay only by credit or debit card. Please note that the registration statement can be used to open a business bank account, take out business loans, etc.

 

FISCAL OBLIGATIONS AFTER REGISTRATION AT THE CHAMBER OF COMMERCE (KVK)

After registering as freelancer, you will have two tax obligations:

a) Income tax return (March-April)

b) VAT declaration – BTW (January, April, July and October)

 

Source :  KVK

 

 

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst

Patricia Santa Cruz
Tax Advisor

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

            FOLLOW US AND CONTACT US!

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health care allowances 2

What is World Income Statement (Wereldinkomen)?

The World Income Statement (Wereldinkomen) is a document in which income earned both inside and outside the Netherlands is reported. It is related to any subsidy you have applied for with the Tax and Customs Administration (Toeslagen).

 
1. When do you receive this document?

This form is only received from the Tax and Customs Administration (Toeslagen) if you or your partner have received any type of subsidy during the time you lived in the Netherlands. The form corresponds to the fiscal year in which you have resided in the country.
For example, if you have applied for subsidies such as healthcare allowance (Zorgtoeslag) or childcare allowance (Kinderopvangtoeslag), you are likely to receive this form. If you have a partner, both of you will generally receive the Wereldinkomen form.

2. Is it related to the tax return?

It is common to confuse this document (Wereldinkomen) with the tax return (Inkomstenbelasting), but they are separate. The Opgaaf Wereldinkomen is independent of the tax return.

3. What information should be provided in this form?

The form should include the total income earned worldwide, both income from the Netherlands and income from other countries.

4. Does submitting and completing this document (Wereldinkomen) mean submitting my tax return (Inkomstenbelasting)?

Submitting this form does not mean submitting your tax return (Inkomstenbelasting). By completing and submitting this document, you are only updating the information about your worldwide income so that the Tax and Customs Administration (Toeslagen) can determine if the subsidy received has been correct.

5. Is it mandatory to submit this form?

Yes, it is mandatory to provide the requested information in this form. This allows for the correct adjustment of the subsidy information. If the received subsidy was less than what was entitled, you may be eligible for an additional refund of the subsidy. On the other hand, if the subsidy was greater than what you should have received, you may have to repay part or all of the subsidy.


PSM Consultancy, a tax consultancy service in English, can assist you in completing the income tax declaration form (Wereldinkomen). You can contact us at: info@psmconsultancy.nl.

Source: Belastingdienst (Dutch Tax Authorities)

We have more than 10 years of experience.

Advisors specializing in tax treaties and specialized in Dutch tax matters.

We have the first online platform in English, where the client can review their information and declarations sent to the Belastingdienst

Patricia Santa Cruz
Tax advisor

PSM Consultancy, an online tax services in English, specializes in providing income tax and VAT services for individuals and the self-employed, in addition to making requests for subsidies in the Netherlands.

            FOLLOW US AND CONTACT US!

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