Tax credits (international)

A tax credit reduces the amount of income tax and national insurance contributions you owe. Tax credits consist of a 'contribution component' and a 'tax component'. The contribution component is the reduction on national insurance contributions. The tax component is the reduction on income tax. Depending on your personal situation, you can receive the full amount of the tax credit, part of the amount or no tax credit.

For more information, go to 'Aftrekposten en kortingen' (only available in Dutch).

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Reduction on national insurance contributions

Do you have compulsory national insurance and do you meet the conditions for the tax credit? If so, you are entitled to the contribution component of the tax credit.

Please note!

If you are voluntarily covered by the national insurance schemes via the Sociale Verzekeringsbank (SVB), you will not receive the reduction on the national insurance contributions via the Tax Administration. In that case, the contribution component is included in the SVB's contribution calculation.

The contribution component of the tax credit is different every year.

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

Reduction on income tax

If you are a resident taxpayer in the Netherlands, you may receive not only the contribution component, but also the amount of the reduction on income tax. Check which situation applies to you:

  • You live in the Netherlands for the whole year.
    You are entitled to the tax component of the tax credit. Complete your income tax return to see what you are entitled to.
  • You live abroad for the whole year.
    You are usually not entitled to the tax component of the tax credit. However, you may qualify for some tax components of the tax credit. Complete your income tax return to see what you are entitled to.
  • You live in the Netherlands for part of the year.
    You are usually only entitled to the tax component of the tax credit for the time period you live in the Netherlands. You are not entitled to certain components of the tax credit. Complete your income tax return to see what you are entitled to.
  • You live abroad for the whole or part of the year and you are a qualifying non-resident taxpayer.
    You are entitled to the tax component of the tax credit. This also applies to the period you live abroad. Complete your income tax return to see what you are entitled to.

Contribution component of the tax credit if you have compulsory national insurance in the Netherlands for part of the year

Are you compulsorily covered by the Dutch national insurance schemes for part of the year? If so, you are only entitled to the contribution component of the tax credit for that part of the year. Complete your income tax return to see what you are entitled to.

Contribution component of the tax credit 2024

The contribution component of the tax credit in 2024 is:

  • for the General Old Age Pensions Act (AOW): 17.90/36.97 part of the tax credit
  • for the National Survivor Benefits Act (Anw): 0.1/36.97 part of the tax credit
  • for the Long-term Care Act (Wlz): 9.65/36.97 part of the tax credit

Example

The general tax credit is a maximum of €3,362. The part of the general tax credit that relates to the:

  • General Old Age Pensions Act (AOW) amounts to: 17.90/36.97 part of €3,362 = €1,627
  • National Survivor Benefits Act (Anw) amounts to: 0.1/36.97 part of €3,362 = €9
  • Long-term Care Act (Wlz) amounts to: 9.65/36.97 part of €3,362 = €877

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 tax rate level.

Contribution component of the tax credit 2023

The contribution component of the tax credit in 2023 is:

  • for the General Old Age Pensions Act (AOW): 17.90/36.93 part of the tax credit
  • for the National Survivor Benefits Act (Anw): 0.1/36.93 part of the tax credit
  • for the Long-term Care Act (Wlz): 9.65/36.93 part of the tax credit

Example

The general tax credit is a maximum of € 3,070. The part of the general tax credit that relates to the:

  • General Old Age Pensions Act (AOW) amounts to: 17.90/36.93 part of € 3,070 = € 1,489
  • National Survivor Benefits Act (Anw) amounts to: 0.1/36.93 part of € 3,070 = € 9
  • Long-term Care Act (Wlz) amounts to: 9.65/36.93 part of € 3,070 = € 803

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 tax rate level.

Contribution component of the tax credit 2022

The contribution component of the tax credit in 2022 is:

  • for the General Old Age Pensions Act (AOW): 17.90/37.07 part of the tax credit
  • for the National Survivor Benefits Act (Anw): 0.1/37.07 part of the tax credit
  • for the Long-term Care Act (Wlz): 9.65/37.07 part of the tax credit

Example

The general tax credit is a maximum of € 2,888. The part of the general tax credit that relates to the:

  • General Old Age Pensions Act (AOW) amounts to: 17.90/37.07 part of € 2,888 = € 1,395
  • National Survivor Benefits Act (Anw) amounts to: 0.1/37.07 part of € 2,888 = € 8
  • Long-term Care Act (Wlz) amounts to: 9.65/37.07 part of € 2,888 = € 752

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 tax rate level.

Not compulsorily covered by the Dutch national insurance schemes

If you do not have compulsory national insurance 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 contribution component of the tax credits.

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. Visit the SVB website for more information.

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