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Information about the income tax rulings for residents, partial non-residents and non-residents in the Netherlands...
The taxpayer’s circumstances and registration at a municipality are of great importance in determining fiscal residency. The following facts and circumstances can be relevant when determining tax residency in the Netherlands:
- Where is the taxpayer’s permanent home situated?
- Where are the taxpayer’s financial and social bonds strongest?
- What are the intentions of the taxpayer?
There are three types of tax statuses:
- Resident
- Partial non-resident
- Non-resident
Resident for tax purposes
When a taxpayer has registered at a municipality in the Netherlands they are treated as a resident for tax purposes. A resident taxpayer in the Netherlands is taxed on worldwide income and is eligible to claim the following personal tax deductions, if applicable:
- Alimony payment to former spouse
- Payments for supporting children under 21 years old
- Expenses for illness (including costs of diet by medical orders), decease or disability
- Expenses for visits on the weekend by seriously disabled children
- Expenses for studies for the taxpayer and/or their spouse
- Expenses for maintenance of houses under protection of monuments
- Donations to charitable institutions
Allowances
Resident taxpayers can also request certain allowances if they meet the conditions that apply.
There are four types of allowances that can be claimed:
- Rent
- Health Care
- Child (not from the SVB)
- Day-care
Child benefit
Dutch child benefit is also available for people living and working in the Netherlands who have a child. In order to be eligible for this benefit applicants must:
- Hold a valid residence permit, and
- Hold a work permit if not from an EU country or Switzerland, and
- Not have a secondment certificate from another country
The Social Insurance Bank (SVB) provides information regarding Dutch child benefit.
- See Social Security Benefits for more information about benefits available in the Netherlands
Partial non-resident for tax purposes
Qualification as partial non-resident is only applicable if the 30 percent ruling is granted. This status means that taxpayers are taxed as a resident taxpayer in Box 1 (income from work and principal residence) and as a non- resident taxpayer with respect to the other two tax boxes.
Non-resident for tax purposes
A non-resident taxpayer is an individual who is not treated as a resident taxpayer in the Netherlands. Therefore, they are taxed on worldwide income elsewhere. A non-resident taxpayer will pay tax only on income that can be allocated to the Netherlands.
The information provided here is of a general nature and should not be misconstrued as individual advice. For a detailed expert analysis of your situation, contact the author of this article:
mr. Quintin Eadie
Belastingadviseur
Tax Advisor
Olof Palmestraat 24
2616 LS Delft
T.: +31 (0)15 215 88 15
D.: +31 (0)15 820 00 69
W.: www.aame.nl