Inkomensafhankelijke Combinatiekorting - what is it?

author: Maciej Wawrzyniak4 January 2024
Zwrot podatku z Holandii a podatek w Polsce

The Inkomensafhankelijke Combinatiekorting is a tax deduction for children in the Netherlands that parents can receive when calculating their annual income. It is available to almost all people who are legally employed and have children. What are the conditions for claiming the tax deduction? In this article, we will try to explain all the factors related to the child tax deduction in the Netherlands.

Child tax deduction in the Netherlands - who can claim it

To be eligible for the Inkomensafhankelijke Combinatiekorting tax deduction, you must meet some strict requirements.

Firstly, you must register with the Basisregistratie Personen, where all persons working in the Netherlands are registered. If you are legally employed, regardless of whether you are a resident of the Netherlands or not, your details are already entered in the BRP register. This information is used by various organisations, including the tax authorities, to make payments to Inkomensafhankelijke Combinatiekorting.

Secondly, you must have a child under the age of 12 that you have custody of and who has been registered at your address with the local authority for at least six months during the calendar year.

Third, your income must exceed the amount set for the tax year.

It should be noted that you can claim the child tax credit for up to four previous years, even if you have filed a tax return for the previous year. Below is an overview of the income you must have from work to claim the child tax credit.

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Child benefit in the Netherlands - for whom

In most cases, you and your child do not always live at the same address. However, you can claim tax benefits as a cohabiting parent. This applies if you and your ex-spouse have agreed on equal daily care and upbringing of the child - the child spends at least 156 days per calendar year with both parents.

In the Netherlands, you can also claim tax exemption in the following cases

  • for a foster parent,
  • but only if you raise and care for the child as your own,
  • an adopted child,
  • a child from a previous relationship with your spouse or partner,
  • if you live with a partner or have a partner and are treated as a partner for tax purposes, the child of that partner is treated as a child
  • your child

child benefit in the Netherlands in 2021 - how much does it cost?

It is difficult to give a definite answer to the question of the amount of child benefit in the Netherlands. This is due to the fact that the amount of the benefit directly depends on the applicant's income. Since the income threshold varies from year to year, the amount of the tax credit varies from year to year, even for the same person. The Dutch tax authorities consider each situation individually.

Therefore, it is worth using the Dutch tax refund calculator Aangifte, which allows you to calculate the exact amount of tax that can be refunded in a particular tax year, taking into account the child tax credit.

To claim the child tax credit, you must first file an annual tax return. The easiest way to do this is to use our innovative Dutch tax return filing app. With Aangifte, you can fill in all the necessary fields in just a few steps. If you have any problems, please contact our consultants who will use their knowledge and experience to help you complete all the necessary formalities. Let us help you complete your tax return in Poland and get the maximum tax refund - we are always happy to assist you.