Tax refunds
Situations where you may be entitled to a tax refund
In the Netherlands you can file an income tax return if you or your partner had Dutch taxable income and/or in some specific situations. Note that if you are entitled to a tax refund, you actually need to file an income tax return to claim it.
Claiming back excessive up front paid tax
In general, you will only be entitled to a tax refund in case some form of tax is paid up front (payroll wage tax withholdings, preliminary tax assessment, dividend tax) and the paid amount exceeds your actual tax liability on the basis of your tax return. So, you can claim back any excessive upfront tax payments by filing an income tax return. Below, we listed examples of situations where this may apply:
- you were employed in the Netherlands (paid through Dutch payroll only part of the year (year of migration, switching employers, unpaid leave)
- you are home owner and paid costs and/or interest with respect to a (qualifying) mortgage loan
- you had one or more children under 12 years of age (on Jan 1), registered at your address for more than 6 months in the year (entitlement to combination tax credit)
- moved abroad and received a (bonus) payment (Dutch payroll high withholding rate) related to a previous year
- you had personal deductions (medical expenses, alimony payments, charitable donations - note that thresholds and conditions apply).
- dividend tax was withheld on dividend that you received (af applicable, it will be set of against tax due)
Note that being a home owner and paying mortgage interest (and other finance costs) may lead to a reduction of income tax liabiity, but if no tax if paid up front (payroll wage tax withholdings) for example in case of freelance income, this lower tax liability will never lead to a tax refund.
Actual tax refund
- you were born before 1963 and you have a fiscal partner with sufficient income and you have no or very little income. In that situation, you may be entitled to pay out of (part of) the general tax credit. Paying out of this credit originates from transitional rights and only applies to people who were bore before 1963 and who meet the conditions.
Other than that, the Dutch government can support you with certain allowances (Toeslagen), which are not part of the income tax return. More details can be found here.
Feel free to contact us in case of questions.