Other benefits
The Dutch tax system provides several other income replacement schemes to compensate income loss for specific portions of the population:
General tax credit (Algemene heffingskorting)
› All employees in the Netherlands (including expats) are entitled to the general tax credit, which is basically a credit on your taxation through your employer.
› Employers always take into account tax credit when withholding taxes and contributions.
› Partners are entitled to the benefit individually. If you live with your partner for more than six months and he / she earns less than 6.000 euros, you can utilise (part of) his / her amount.
› The general tax credit in the Netherlands is around 2.000 (1.000) euros if you are younger (older) than 65.
Rent benefit (Huurtoeslag)
› The rent benefit was initially designed for households with average earnings even though most recipients belong to the minimum-income level.
› A notification will be sent to you approximately eight weeks after applying while the benefit will be deposited in your bank account every month in order to pay next month’s rent.
› Eligibility depends on age, rental price as well as household’s level of income and composition. Note that:
- Maximum monthly rental price is 631 (349) euros if you are older (younger) than 23 years old.
- Maximum annual level of income is 20.970 and 28.470 euros for singles and cohabitants respectively (younger than 65 years old).
- Maximum annual level of income is 19.800 and 27.070 euros for singles and cohabitants respectively (older than 65 years old).
Childcare benefit (Kinderopvangtoeslag)
› This subsidy is offered by the Dutch government to cover (part of) childcare cost, as long as your child attends a registered childcare organisation (day-care center).
› Both you and your partner (if applicable) should study, work or participate in a counseling project.
› The amount of the supplement depends on:
- level of income
- childcare expenses
- type of childcare
Child benefit (Kindgebonden)
› This is probably the most important (and easy to get) benefit for many families. The Dutch tax administration will automatically sent you the child benefit as long as your children are under the age of 18 and your annual income does not exceed 46.700 euros per year.
› As a rule, the less you earn the more you get (maximum 82 euros per month).
Children's allowance (Kinderbijslag)
› This benefit covers part of the costs for raising children and depends on the number and age of children as well as whether they live at home or not.
› You (and your partner) should have residence permit and be registered with GBA.
More information and all forms regarding Dutch tax benefits can be found online (in Dutch) or at the Tax Office (0800-0543).
