If you are receiving an income from employment in the Netherlands, your employer will always deduct wage tax from your salary. This is the general tax on income that every citizen in the Netherlands is obligated to pay.
However, this deduction of taxes does not take into account any deductible items or tax credits that you might have. This means that in some cases, you have paid too much tax. At the end of the year, you can request a refund of this excess amount by filing for an income tax return. Instead of receiving this at the end of the year, you can also obtain a refund before this. You can request the Dutch tax office to pay you the excess amount in monthly instalments.
There are several deductible items that the provisional refund applies to, for example:
For a more detailed report of deductible items for the provisional refund, please get in contact with Broadstreet and our tax advisors are happy to inform you about these.
Broadstreet can help you file the request for you. If your situation happens to change – say you’ve bought a house or you no longer receive an income that requires wage tax – you must always notify the tax authorities. Broadstreet can help you file these changes too.
There are a lot of questions about the provisional tax refund among expats. At Broadstreet, we receive questions about this subject on a daily basis. We have gathered the most frequently asked questions we have had the past couple of months.
Anyone who receives an income other than remuneration, is a provisional taxpayer. They can submit a provisional tax return to find out if they have to pay money or get some back.
There are several ways to calculate your provisional tax payments. Due to the range of tax options available it is important to understand how each method works and how it can affect your business. Since this can cause you to pay to much or less than you should, we recommend that you talk to a financial advisor, like Broadstreet, before choosing a method.
The provisional tax refund is an estimate of what a company’s or individual’s financial performance for the tax period will be.
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