Dutch Tax Tips: Benefits & Allowances in the Netherlands
Did you know that there are a few tax benefits and allowances that you can take advantage of when preparing your Dutch income tax return?
Allowances in the Netherlands
All benefits and allowances in the Netherlands are granted and paid by the Dutch tax authorities. Whether you are eligible and, of course, the amount is contingent on your income level.
Here is a quick overview:
› Healthcare allowance (Zorgtoeslag)
› Dependent child budget (Kindgebonden budget)
› Rental allowance (Huurtoeslag)
› Childcare allowance (Kinderopvangtoeslag)
Healthcare allowance (Zorgtoeslag)
The healthcare allowance (Zorgtoeslag) is a contribution to the cost of your health insurance. If you pay Dutch health insurance premiums you can receive it given that you meet the conditions.
The amount of the healthcare allowance depends on your (aggregated) income and as expected, if your (and your partner’s) income is higher than a certain level will not receive it. This of course means that if you have a partner you have to apply together (combined income level).
Finally, note that children are not eligible for the healthcare allowance since they are insured free of charge until they reach the age of 18.
Dependent child budget (Kindgebonden budget)
The dependent child budget (Kindgebonden budget) is a contribution to the cost of raising your children up to the age of 18, and the amount depends on:
› The number of children
› Age of the children
› (Aggregate) income and assets
As a rule, you don’t have to apply in order to receive the dependent child budget. You will automatically be notified if you are eligible.
Rental allowance (Huurtoeslag)
The rental allowance (Huurtoeslag) is a contribution to your housing costs, and its amount depends on:
› Whether you live with your partner or another housemate
› Your age
› The amount of rent you pay
› Your income
Childcare allowance (Kinderopvangtoeslag)
¨The childcare allowance (Kinderopvangtoeslag) is a contribution to the cost of day care for your children, and the final amount is based on:
› Your income
› The number of dependent children that attend day care
› The number of day care hours
Finally, it should be underlined that you will receive the childcare allowance if:
› You work, study or are on course to work or do an integration course at a certified institution. This also applies to your partner.
› Your child goes to a registered day care.
For more information we advise you to visit the Belastingdienst and / or ask a trustworthy tax advisor.
Nico Koppel is an Expat Service Provider, who specialises in tax advice & accountancy. For more information, please comment below or visit Koppel Tax Consultants.
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