Changes in wage tax credits for non-residents of the Netherlands
From 1 January 2019, tax credits will be taken into account for a smaller amount when calculating the wage tax of non-residents of the Netherlands.
Wage tax and income tax offer tax credits such as the employed person's tax credit, the elderly person's tax credit and the general tax credit. These tax credits consist of a tax component and a social insurance component. Until 1 January 2019, everyone who was subject to wage tax and was socially insured in the Netherlands received both the tax component and the social insurance component of the tax credits.
As from 1 January 2019, non-residents of the Netherlands will no longer receive the tax component of the tax credits. They will still receive the social insurance component of the tax credits if they are socially insured in the Netherlands. There are a number of exceptions.
Residents of countries in the EU, EEA, Switzerland or the BES Islands
Employees who are residents of a country in the EU or EEA, Switzerland or the BES islands do receive the tax component of the employed person's tax credit.
Qualifying non-resident taxpayers
Qualifying non-resident taxpayers are still entitled to the tax component of the tax credits. They can reclaim this via the income tax return.
Non-resident taxpayers who were eligible in a previous year and whose situation has not changed may apply for a provisional assessment. That way they can receive the tax credits to which they are entitled and which they have not received through wage tax.
Residents of Belgium, Aruba and Suriname
From 1 January 2020, residents of Belgium, Aruba and Suriname will again receive the tax part of the general tax credit via the wage tax.
This means that the employer automatically takes this tax credit into account when calculating wages. Therefore, you no longer need to apply to us for the tax component of the general tax credit with a provisional assessment or in your tax return. If you already have a provisional tax assessment for the tax component of the general tax credit, you can apply to us to change or stop the provisional assessment.
Residents of Belgium were already entitled to the tax component of the general tax credit in 2019. In some cases, this was automatically set off in wages, and could be reclaimed by means of a tax return or paid out through a provisional assessment. From 2020, this will therefore be automatically incorporated in wages.