Tax refund is a term well known to most Poles. For several decades now, we have had to settle accounts with the tax office every year. The lucky ones can thus obtain a tax refund ranging from several hundred to even several thousand zlotys. The situation is no different in Dutch tax law. There, too, it is necessary to settle accounts with the tax authorities, i.e. to file the jaaropgave. The standard tax refund from the Netherlands includes overpaid advance payments for income tax. Anything that has been paid in excess of the amount calculated at the end of the tax year is refunded to the taxpayer. However, it turns out that this is not all that can be obtained. This amount can be significantly increased by taking advantage of tax credits.
What is an extended Dutch tax refund?
An extended Dutch tax refund is a term used to describe the tax reliefs that are available to anyone who pays income tax in the Netherlands and works there. Below, we outline the most important tax reliefs that not everyone is aware of, which can bring you an extra few hundred euros in refunds.
What reliefs make up an extended tax refund in the Netherlands?
Basic tax allowance - algemene heffingskorting
As in every country, there is a common tax relief in the Netherlands called algemene heffingskorting. The maximum amount of the relief is approximately €2,270, and the lowest earners are entitled to the highest value. It is also important how long you have stayed in the Netherlands during the tax year. This is because the allowance is calculated in proportion to the time we have lived in the country.
Joint return - verhooging van de heffingskorting
In Poland, taxpayers can settle jointly with their spouse. This makes sense when one person earns a lot and the other earns little or nothing at all. The income is then added up and divided between the two people. This allows the other, lower-earning person to benefit from discounts and allowances. In the Netherlands, it is similar, except that taxpayers can file jointly not only with their spouses, but also with other people with whom they live and maintain a household. In doing so, it is not necessary to be married. This has a nice term in Dutch tax law as 'tax partner'.
In order to be eligible for an extended tax refund through the verhooging van de heffingskorting relief, several conditions must be met:
- If you are settling with a tax partner who is not your spouse, you must have been in a relationship with them for min. 6 months and the total income must not be more than € 6320.
- It is necessary to share household expenses in order to be jointly accounted for. In addition, you must be registered at the same address for a minimum of 6 months and be at least 18 years old. Here, too, a joint income criterion of no more than € 6320 applies.
It is worth adding as a reminder that the verhooging van de heffingskorting relief can be used together with a tax partner, which is, for example, a sibling who meets the above-mentioned conditions
Earnings-related allowance - arbeidskorting
If you work and earn an income from employment, you may benefit from a tax allowance called arbeidskorting. The maximum amount is approximately EUR 1,500 and the amount granted is calculated as a percentage of earnings.
These are just some of the many tax benefits available to those working in the Netherlands. The most interesting thing about all this is that you do not have to be permanently registered there at all to have access to the same tax advantages as the Dutch. If you have worked in the Netherlands in the past years and have not yet settled your tax, we can help you with this. Not only will we prepare and file the return for you, but we will also monitor your case by acting as an intermediary with the authorities.
Wondering about the amount of your tax refund? Don't hesitate any longer! Our user-friendly Dutch tax refund calculator 2024 is primed and ready, ideal for those looking to swiftly and effortlessly compute their refund. In just a few simple steps, input your details and discover the potential benefits awaiting you. Don’t delay – find out now just how straightforward it is to ascertain the tax refund you might receive.
