Tax credits (international)

A tax credit is a discount on your income tax and national insurance contributions. Depending on your personal situation, you can receive the full amount of the tax credit, part of the amount or no tax credit.

Read all the information under Deductions and discounts.

On this page:

Reduction on national insurance contributions

If you have compulsory national insurance, you will receive tax credit for the national insurance contributions. To qualify you must meet the conditions for the tax credit.

Please note!

If you are voluntarily insured for national insurance via the Sociale Verzekeringsbank (SVB), you will not receive the discount for the national insurance contributions via the Tax and Customs Administration. Part of the discount is then included in the SVB's contribution calculation.

The contribution of the tax credit is different every year.

The premium component of the tax credit is also different if you are insured in the Netherlands for part of the year.

Reduction on income tax credit

If you are a qualifying non-resident taxpayer, you will receive not only the amount of the tax credit for the national insurance contributions ('premium part') but also the amount of the reduction for income tax ('tax part').
What your 'tax part' is depends on your situation. This becomes clear when completing your income tax return.

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

If you live outside the Netherlands and only pay national insurance contributions in the Netherlands for part of the year, or if you live in the Netherlands and do not pay national insurance contributions in the Netherlands for part of the year because you pay them in another country, you will not receive the full amount of the tax credits to which you are entitled. We calculate the premium part of the tax credit on a time-proportional basis. We do not calculate the tax part of the tax credit in proportion to time, but on an annual basis.

In the time-proportionate calculation, we determine the premium portion of the tax credit to which you are entitled. You are only entitled to the premium part of the tax credit over the period that you have paid national insurance contributions in the Netherlands. This is calculated in your tax return.

Contribution component of the tax credit 2020

The contribution component of the tax credit in 2020 is:

  • for the National Survivor Benefits Act (Anw): 0,1/37,35 part of the tax credit
  • for the General Old Age Pensions Act (AOW): 17,90/37,35 part of the tax credit
  • for the Long-term Care Act (Wlz): 9,65/37,35 part of the tax credit

Example

The general tax credit is a maximum of € 2,711. The part of the general tax credit that relates to the:

  • National Survivor Benefits Act (Anw) amounts to: 0,1/37,35 part of € 2.711 = € 7
  • General Old Age Pensions Act (AOW) amounts to: 17,90/37,35 part of € 2,711 = € 1,299
  • Long-term Care Act (Wlz) amounts to: 9,65/37,35 part of € 2,711 = € 700

Please note!

Have you reached the AOW pension age? Then different calculation rules apply for the calculation of the different parts of the tax credit. This is because you no longer have to pay the AOW contribution. In the year that you reach the AOW pension age, the tax rate in the first two tax brackets will change as a result. The month in which you reach the AOW pension age determines the amount of the tax rate.

Contribution component of the tax credit 2019

The premium part of the tax credit in 2019 is:

  • for the National Survivor Benefits Act (Anw): 0.1/36.65 part of the tax credit
  • for the General Old Age Pensions Act (AOW): 17,90/36,65 part of the tax credit
  • for the Long-term Care Act (Wlz): 9.65/36.65 part of the tax credit

Example

The general tax credit is a maximum of € 2,477. The part of the general tax credit that relates to the:

  • National Survivor Benefits Act (Anw) amounts to: 0,1/36,65 part of € 2.477 = € 7
  • General Old Age Pensions Act (AOW) amounts to: 17.90/36.65 part of € 2,477 = € 1,209
  • Long-term Care Act (Wlz) amounts to: 9.65/36.65 part of € 2,477 = € 652

Please note!

Have you reached the AOW pension age? Then different calculation rules apply for the calculation of the different parts of the tax credit. This is because you no longer have to pay the AOW contribution. In the year that you reach the AOW pension age, the tax rate in the first two tax brackets will change as a result. The month in which you reach the AOW pension age determines the amount of the tax rate. 

Contribution component of the tax credit 2018

The premium part of the tax credit in 2018 is:

  • for the National Survivor Benefits Act (Anw): 0.1/36.55 part of the tax credit
  • for the General Old Age Pensions Act (AOW): 17,90/36,55 part of the tax credit
  • for the Long-term Care Act (Wlz): 9.65/36.55 part of the tax credit

Example

The general tax credit is a maximum of € 2,265. The part of the general tax credit that relates to the:

  • National Survivor Benefits Act (Anw) amounts to: 0,1/36,55 part of € 2.265 = € 6
  • General Old Age Pensions Act (AOW) amounts to: 17.90/36.55 part of € 2,265 = € 1,109
  • Long-term Care Act (Wlz) amounts to: 9.65/36.55 part of € 2,265 = € 598

Please note!

Have you reached the AOW pension age? Then different calculation rules apply for the calculation of the different parts of the tax credit. This is because you no longer have to pay the AOW contribution. In the year that you reach the AOW pension age, the tax rate in the first two tax brackets will change as a result. The month in which you reach the AOW pension age determines the amount of the tax rate.

Not compulsorily insured under the Dutch national insurance schemes

If you are not compulsorily insured for social security in the Netherlands, you do not have to pay national insurance contributions here. For example, if you are employed outside the Netherlands. In that case, you are usually insured for social security in the country where you work. For your tax credits, this means that you are not entitled to the premium part of the tax credits. This is the part of the tax credit that relates to national insurance.

Do you live in the Netherlands and receive a foreign pension? And are you insured outside the Netherlands for your healthcare costs? If so, you may be granted an exemption to pay national insurance contributions in the Netherlands. The Sociale Verzekeringsbank (SVB) will assess whether you are eligible. Read the information on the SVB website.

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