How is the contribution calculated?

If you are compulsorily covered by social insurance schemes in the Netherlands, you must pay national insurance contributions as well. The national insurance contributions owed are calculated on the contribution base. The contribution base has a maximum. If you are not liable to pay national insurance contributions for the whole year in the Netherlands, the maximum contribution base is only calculated over the period that you were liable to pay national insurance contributions here. The amount owed is then decreased by the national insurance component of the tax credit and is collected along with any income tax owed in 1 amount.

Contribution base

The contribution base is (usually) equal to the taxable income in box 1, calculated according to the regulations that apply to a resident of the Netherlands. This means that in the calculation of the contribution base, not only your income in box 1 in or from the Netherlands is taken into account but also any positive or negative income from work and home in another country. It therefor concerns your worldwide income in box 1. Furthermore, your personal allowance is taken into account.

Example

We use fictitious amounts in this example.
You are 34 years old, not married and you were employed in the Netherlands in 2012. Your income from employment amounted to € 18,151. From your ex-spouse in your country of residence, you received € 4,538 in maintenance. In addition to this, you received income from employment in your country of residence amounting to € 2,269. You have an owner-occupied home. The notional rental value amounts to € 908. You have paid € 3,360 in interest and costs on loans for this home.

The contribution base amounts to:

Income from employment

€ 18,151

Income from employment in country of residence

€   2,269

Maintenance

€   4,538

Notional rental value

€      908

Subtotal

€ 25,866

Minus: interest and expenses for the owner-occupied home

- € 3,360

Contribution base

€ 22,506

You owe on this contribution base (prior to deduction of tax credit):

Contribution under the General Old Age
Pensions Act

17% of € 22,506 =

€ 3,826

Contribution under the Surviving
Dependants Act

0.6% of € 22,506 =

€    135

Contribution under the Exceptional
Medical Expenses Act

10% of €22,506 =

€ 2,250

Please note!

If you reached state pension age, different calculation rules are applied to calculate the various components of the tax credit. If you are of state pension age throughout the year, you do not pay old-age pension contributions. In the year in which you reach state pension age, the old-age pension contributions you have to pay will be adjusted. That is why we will adjust the tax rate in the first 2 brackets in that year. The month in which you reach state pension age will determine the amount of the tax rate. If you were born before 1 January 1946, you do not have to pay any old-age pension contributions, but your maximum contribution base will be higher.

 

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