Tax refund subsidy in the Netherlandsauthor: Maciej Wawrzyniak27 September 2023
With this article, we want to dispel all your doubts about the Dutch tax refund surcharge. Is it compulsory to settle with the Dutch tax authority Belastingdienst in this situation? Is the Dutch tax surcharge linked to any additional benefits? Answers to these and other questions can be found in the following text.
Tax settlement in the Netherlands - is it compulsory?
Poles employed for legal work in the Netherlands are obliged to settle taxes in this country annually. This applies both to persons registered and not registered in this country. Taxpayers who have not chosen to permanently register in the Netherlands must compulsorily settle their tax in one of the following three cases.
Upon receipt of a tax return call from the tax authority in the Netherlands
If, as a taxpayer, you have received an official summons in writing informing you that you have to settle your tax in the Netherlands (this document is called an Aangiftebrief), it is your duty to do so within a certain period of time. In relation to the previous tax year, 1 July of the current year is the last day to settle with the Dutch tax authority Belastingdienst. It is mandatory to settle your Dutch income tax after you have received your Aangiftebrief, regardless of whether, after calculations, it turns out that you may receive a refund or will have to pay a surcharge. It is also important to bear in mind that the receipt of an Aangiftebrief summons imposes an obligation to settle with the tax authorities in the Netherlands even if you have not worked (and thus - not been paid) in the Netherlands during the indicated tax year. In this case, a so-called nil return is filed with the authorities.
I have ignored the aangiftebrief - what now?
If this situation has arisen, you must take into account that you will have to face the consequences of your decision - the tax office in the Netherlands can impose a hefty financial penalty on you. To avoid this, all you have to do is to settle your Dutch tax on time. If you fail to settle with the Belastingdienst, you will receive an official reminder after a few weeks - from then on you must settle within 10 days. If you ignore your tax obligation this time too, administrative proceedings will be initiated against you and you will be fined.
When the tax return (Netherlands) shows that you have to pay a surcharge of 46 euros or more
A surcharge on income tax in the Netherlands occurs when your full-year advance payments turn out to be too low in relation to the calculated tax value. Here, the tax settlement occurs when the amount of the surcharge is 46 euros or more. If from
Your tax calculations show that your Dutch tax surcharge for the past tax year is, for example, EUR 40, you are not required to settle with the Belastingdienst.
If your tax refund from the Netherlands is more than 15 euros
You are also obliged to settle Dutch tax for the past tax year if you are entitled to a financial refund of more than 15 euros. Importantly - a final settlement amounting to less than the above-mentioned amount does not oblige you to settle Dutch tax. If the projected refund exceeds the amount of 15 euros, settlement is mandatory. In this case, as when you ignore the Aangiftebrief notice, you can receive a hefty fine for failing to settle Dutch tax.
What does the tax underpayment result from?
An underpayment of tax in the Netherlands is the result of collecting too little for income tax during the year. This is often influenced, for example, by the taxpayer's earning exceeding the next tax threshold. Part of our earnings should be subject to a higher rate and the advance payment is still collected at the same rate. In the end, it turns out that we should pay more tax - then during the tax return, it turns out what the difference is.
Tax surcharge Netherlands - what are the consequences if I do not pay on time?
If you do not pay the tax due as required, you will face unpleasant consequences. At first, there is no reason to worry if you forget to make the transfer or miss the deadline for the tax return. We will receive an Aanmaning letter from the Belastingdienst, which will be a reminder and inform us that we have to pay. This gives us 14 days to pay everything. Unfortunately, even then we will have to pay a fee - if the amount owed is less than €454, we will have to pay an additional €7, and if more than this, the fee rises to €15. We have to pay for the need for the office to send the letter and the extra work it had to do.
If we do not follow the instructions indicated in the Aanmaning letter, i.e. within two weeks of receiving the demand for payment, the Belastingdienst will take more decisive action. If our arrears are less than € 90, the costs will be an additional € 39. For debts equal to or exceeding € 90, the mandatory fees will consist of € 39 for the first € 45 of arrears and an additional € 3 for each subsequent € 45, up to a maximum of € 11,473.
Tax surcharge - how to check?
If you want to check whether you have any liabilities to the Belastingdienst, all you need to do is follow a few simple steps. Log in to the SVB website with your DigiD code and go to the 'list of debts' (Schuldenoverzicht) - here you will find all the current charges, for example if you have received incorrect benefits or a request for a refund of overpaid tax.
Dutch tax credit vs. child tax credit
Are you the parent of a child who has not yet reached the age of twelve? If so, you need to know that, in addition to the annual tax refund from the Netherlands, you can also claim an additional child tax credit for child benefit. The Dutch tax surcharge for such a relief can be up to €3,000. What do I need to do to get the Dutch child allowance?
- Prepare the child's birth certificate on a European form.
- Prepare a document confirming your joint registration (yours and your child's) in Poland (it must be translated into English by a sworn translator).
Netherlands tax surcharge - where to pay
The fastest and safest way to accurately settle your Dutch tax for the past tax year is to entrust this task to professionals. Tax advisors from the accountancy firm of your choice will calculate your Dutch tax accurately, tell you whether you can count on any additional allowances and whether you will have to pay a Dutch tax surcharge. If you want to apply for a Dutch tax refund yourself, you can check out the first Polish online Dutch tax settlement application Aangifte24 today. It gives you the opportunity to recover up to 100% of your Dutch income tax in Poland. See for yourself how much this modern tool simplifies all the formalities related to Dutch tax refunds.