When you are not liable to pay national insurance contributions for the whole year

If you are not liable to pay national insurance contributions for the whole year in the Netherlands, you only owe national insurance contributions over the period that you are liable to pay national insurance contributions. If the period in which you are liable to pay national insurance contributions is not equal to the period in which you are liable to pay tax, there are 2 calculation methods possible in order to determine how much contribution you owe:

  1. time proportionate conversion of the maximum contribution base
  2. income proportionate conversion of the contribution base (deduction method)

The calculation method that is most advantageous to you is applied.

Examples

In the examples we're going out for a fictitious amount for the premium income: € 33,363. And a fictional percentage for the national insurance premium: 30% of the premium income.

Example 1

You lived in the Netherlands for the whole of 2013. From 1 August, you start working in Germany. From August, you are no longer covered by national insurance schemes in the Netherlands, but you are still liable to pay tax in the Netherlands because you live in the Netherlands.. Your income in 2013 amounts to € 36,000, of which € 14,000 relates to the period you worked in Germany.

Calculation method 1: time proportionate conversion of the maximum contribution base

In 2013, you owe contributions on a contribution base of € 33,363 at the most. This maximum contribution base is converted to a maximum contribution base over the period that you were insured in the Netherlands. The maximum contribution base over 7 months amounts to 210/360 x € 33,863 = € 19,461.

Calculation method 2: income proportionate conversion of the contribution base (deduction method)

Your income in 2013 amounts to € 36,000 which € 14,000 relates to income from Germany. Your contribution base is converted in proportion to income and amounts to € 36,000 - € 14,000 = € 22,000.

The calculation according to calculation method 1 leads to the lowest contribution base and is applied. The national insurance contributions owed in 2013 (prior to deduction of the tax credit) amounts to 30% x € 19,461 = € 6,838.

Example 2

You reside in Poland for the whole year in 2013. In the summer months, you carry out work as a seasonal worker for 4 months in the Netherlands and earn € 12,000 with this. The rest of the year, you have an unemployment benefit in Poland of € 6,400 in total.

Calculation method 1: time proportionate conversion of the maximal contribution base

In 2013, the maximal contribution base is € 33,363. The maximum contribution base over 4 months amounts to 120/360 x € 33.363 = € 11,121.

Calculation method 2: income proportionate conversion of the contribution base (deduction method)

Your income in 2012 amounts to € 18,400, of which € 6,400 relates to income from Poland. Your contribution base is converted in proportion to income and amounts to € 18,400 - € 6,400 = € 12,000.

The calculation according to calculation method 1 leads to the lowest contribution base and is applied. The national insurance contributions owed (prior to deduction of the tax credit) amount to 31.15% x € 11,121 = € 3,464. The national insurance contribution components of the general tax credit and the employed person's tax credit are determined on a time apportionment basis. The general tax credit is: 120/360 x € 2,001 = € 667. The employed person's tax credit is: 120/360 x € 674 = € 225. On balance, the national insurance contribution owed is: € 3,464 – (€ 667 + € 225) = € 2,572. The income from Poland must be taken into account when using method 2.

Please note!

For the calculation of the converted contribution base, 30 days are the norm for a month and 360 days are the norm for a year.


 

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