In order to properly apply for a Belastingdienst, you will need a tax card (Jaaropgaaf) from your employer. In order to calculate your tax overpayment, you will need information about your earnings or the amount of tax contributions you have paid. You should be aware that other factors that you won't find on the jarograph also affect the total amount of your refund. What increases and what decreases the overpayment? This will be discussed further in the article - please read on.
What affects the amount of the Dutch tax refund? First of all, your residency status
What determines the amount of the Dutch tax refund? It depends on your residency status. Why? It is worth knowing that it is much more profitable for such persons to pay with the office. This is primarily due to the fact that residents of the Netherlands are granted additional tax deductions that automatically increase the total amount of the Dutch tax refund paid.
First of all, you need to providethe Belastingdienst with the EU/AT certificate that you received from the Polish tax office. The document must state that at least 90% of your income was earned in the Netherlands during the relevant tax year.
The amount of tax refund from the Netherlands is a matter of the tax year
The Netherlands is a country with different tax thresholds every year. Dutch taxes work on a progressive scale - the more you earn, the more taxes you pay. This, in turn, has a direct impact on your total Dutch tax overpayment.
Higher tax refunds from the Netherlands - joint accounting with a fiscal partner
The Dutch tax system provides for the possibility of joint accounting with a fiscal partner. In most cases, such a scheme is much more profitable than filing reports independently. In practice, joint reporting to the authorities has two advantages
- joint accounting reduces income tax,
- if the fiscal partner has a low income (or no income at all), he or she can apply for a special tax deduction, the so-called "departure allowance" (algemene heffingskorting), which also affects the amount of tax refunded from the Netherlands.
Who can be a fiscal partner? These include
- spouses or persons in a registered relationship,
- persons who jointly own property and live together,
- persons registered at the same address and raising a child/children together,
- taxpayers who are jointly registered as partners in a pension fund.
What increases the Dutch tax refund? Be aware of tax benefits
As we have already mentioned above, some taxpayers may be entitled to additional tax credits. It often happens that their application significantly increases the amount of the refund. Some of the most popular benefits in the Netherlands are child benefit, divorce benefit or education benefit
Higher tax overpayment - the age of the taxpayer also matters
Another aspect that affects the amount of tax refunded from the Netherlands is the age of the taxpayer. This is due to the fact that the Dutch tax system provides special benefits for pensioners (persons over 65 years of age). Such taxpayers pay a lower tax rate and can also count on a tax rebate for the elderly. All this makes the Dutch tax return higher than that of younger people
Type of income - this can also increase the overpayment to be refunded
How you earn your income in the Netherlands is also important for the Belastingdienst. This includes sickness benefit. While on it, you can still expect to overpay tax - what's more, if you incurred medical expenses during the year that were not covered by your insurance policy, you can deduct them on your tax return, so you get an even bigger Dutch tax refund
A smaller tax refund from the Netherlands is possible
Are you working as a temporary worker / self-employed? Is your income from additional work not taxable? Then you can expect a lower Dutch tax refund
Want to know in advance how much you can expect? Use our special calculator built into our Aangifte24 Dutch tax refund app. Welcome, and if you have any questions, don't hesitate to contact our consultants.
