Entitlement to a tax credit when you are insured in the Netherlands for part of the year

Do you live outside the Netherlands, and do you pay national insurance contributions in the Netherlands for only part of the year? Or do you live in the Netherlands, but do you pay no national insurance contributions in the Netherlands for part of the year because you pay these contributions in another state? If so, we calculate the national insurance component of the tax credit on a time apportionment basis. We do not carry out a time apportionment calculation for the income tax component of the tax credit for the year.

The Tax and Customs Administration carries out this time apportionment calculation to determine the national insurance component of the tax credit to which you are entitled. You are only entitled to the national insurance component of the tax credit for the period in which you paid national insurance contributions in the Netherlands. The Tax and Customs Administration calculates this period as follows:

  • A calendar year is equal to 360 days.
  • A month is equal to 30 days.
  • The commencing date of the period counts as a whole day.
  • The final date of the period is not taken into account.

Please note!

Did someone pay national insurance contributions for only part of a year because of their death in that year? If so, a time apportionment calculation is not carried out on the tax credit.

Example of time apportionment tax credits

The following examples are based on fictive amounts.

Example

You live in outside the Netherlands. You were employed outside the Netherlands until 1 September. You were then employed in Netherlands for the remainder of the year. You pay national insurance contributions in the Netherlands from 1 September. Consequently, you pay national insurance contributions for a period of 4 months (120 days). You are entitled to the general tax credit and employed person's tax credit. The general tax credit amounts to € 2,001 and the employed person's tax credit to € 1,723, a total of € 3.724.

You are entitled to 120/360 of the national insurance contributions component of the tax credit for the year. 

Time apportioned component of the tax credit:  120 / 360 x € 3,724.



   






 

Javascript is disabled in this web browser. You must activate Javascript in order to view this website.