The following tax credits may be applied on your taxable box 1 income:
|Personal tax credit (max for lower incomes)||€ 2,203|
|Personal tax credit (max for higher incomes)||€ 1,342|
|Personal tax credit for partner without income born after 1 January 1963||€ 1,175|
|Personal tax credit for partner without income born before 1 January 1963||€ 2,203|
|Labour tax credit (max for lower incomes)||€ 2,220|
|Labour tax credit (max for higher incomes)||€ 184|
If you have children additional tax credits can apply. There are also other specific tax credits depending on your situation but the above are the common tax credits.
Everyone has the right to credits on taxes to be paid: the general tax credit. On top of that, you may receive additional credits.
Tax credits consist of a national insurance contributions component and a tax component (not the elderly person’s tax credit and the single elderly person’s tax credit). The component that you will receive depends on your situation.
The right to the national Insurance component
If you have compulsory insurance in The Netherlands, then you are entitled to the national insurance component of your tax credit. If you are not insured for national insurance, then you are not entitled to this. If you want to know when you are or are not insured and how the national insurance is levied, please see The levying of national insurance contributions.
The right to the tax component
If you live abroad and are a taxpayer in The Netherlands, then you are not automatically entitled to the tax component of your tax credit. You are only entitled to this if you choose to be treated as a resident taxpayer, or if you are a resident of Germany, Belgium, Suriname, the Dutch Antilles or Aruba.
- Allowance for German residents;
- Allowance for Belgian residents;
- Allowance for residence of Suriname, the Dutch Antilles and Aruba;
You are always entitled to the tax component of the employed person’s tax credit, even if you do not choose to be treated as a resident tax payer. You must then satisfy the criteria for the employed person’s tax credit.
Composition of tax credits
In the Netherlands, the Tax and Customs Administration levies the income tax and the national insurance contributions for AOW, ANW and AWBZ as one aggregate amount. For this reason, the tax credits relate to both income tax and national insurance contributions.
Maximum size of the tax credit
The tax credit cannot exceed the combined income levy. The combined income levy is the total amount of taxes and national insurance contributions that you owe on the taxable income in Boxes 1, 2 and 3.
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