Are you missing out on any (tax) benefits?
This article is provided by our partner: Exterus
Taking care of your administration in the Netherlands might be a bit of a challenge, especially when it comes to taxes. The OECD placed the Netherlands amongst countries with high tax rates. You have probably noticed this yourself, when you received first pay slip here. However, there are a number of tax benefits and deductions that you can benefit from. Amongst which, of course, is the 30%-ruling for international employees.
Due to the considerable tax rate here in the Netherlands, it is common Dutch practice to make use of every applicable benefit, deduction or allowance. This is a cultural practice we highly recommend!
During Exterus’ presentation at the CONNECT event – Taxes and Finance on 11 February 2020, some insights into the Dutch tax system and social security legislation will be shared. Of course, we will discuss tax benefits and deductions. However, there are some other benefits that are not directly linked to taxation which may be beneficial to you. These benefits are called “allowances”. There are several child-related allowances that may be applicable to your situation:
- Child allowance (‘kinderbijslag’);
- Child-related budget (‘kindgebonden budget’);
- Childcare allowance (‘kinderopvangtoeslag’);
Child allowance
Am I eligible?
You are entitled to child allowance if you have (an) underage (< 18) child(ren) who lives at the same address as yourself. Please note that this is subject to Dutch social security: if you have an A1-certificate or a Certificate of Coverage issued by a foreign government you may not qualify for the allowance.
How can I get it?
When you register your child(ren) with the municipality at the same address as yourself, you will receive an application form from the Dutch social security authority (‘SVB’). If you did not receive the form, please contact them or us, Exterus.
Child-related budget
Am I eligible?
If you receive child allowance and you have an annual taxable income under € 99,000 as a single parent, or a combined annual taxable income under € 70,000 together with your spouse/partner, you are eligible for this benefit. If the value of your assets exceeds € 116,613 (as a single parent), or € 147,459 (combined with your partner/spouse), you are not entitled to this benefit.
How can I get it?
You can apply for the child-related budget in the virtual environment of the Dutch tax authorities ('Belastingdienst') by using DigiD.
Childcare allowance
Am I eligible?
To be eligible, you and your spouse should both work or study full-time. Your child should attend a registered day care or after school care. Furthermore, you should pay the costs of the care yourself (not your employer).
How can I get it?
You can apply for the childcare allowance in the virtual environment of the Dutch tax authorities ('Belastingdienst') by using DigiD.
Any more benefits/deductions?
Sure! We at Exterus are specialists when it comes to cross border employment and expat services, so we can definitely help you out. Please attend CONNECT: Taxes & Finance for our presentation, or contact Jantiene or Jahir.
Attend the CONNECT event Taxes & Finance