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I am sending money back to my family. Will this incur tax?

Question
 
I have been staying here for 4 years, where I am under dutch tax ruling for my work. My parents gave me a few thousand dollars when I first started studying here. Now they want me to send the money back. I was wondering if sending some money ( eg. a few thousand dollars) back to my parents in another country will incur tax? If there is, how much is that? Is there a money limit to how much i can send so that I do not get taxed?
 
Answer
 
Sending money abroad, back to your parents, will not incur tax (in the Netherlands). You are just paying back the loan you received from your parents. It is not a gift to your parents.
 
 
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Comments (8)
Comment by sharon on Thu, Feb 2nd, 2012 at 1:47 PM
hi arjan, thanks for your reply. so when i return the money, and if belasting asks, i show them my first bank records of when my parents sent me those money ? would that be enough?also, under what cases of money transfer will we get taxed then which we need to be aware of? i saw somewhere that if parents give money to children for more than 2012 euros, they will get taxed for gifts (schenk belasting)? is this true and are there other cases we expats might be aware of?
Comment by arjan enneman on Mon, Mar 5th, 2012 at 8:25 AM
yes, if you show them the bank records, that should be enough to convince them that you are paying back the money which you received earlier. i don‘t expect that questions will be asked by the tax authorities though. parents can give an amount of ? 5,030 to a child tax free every year. there is nothing else to be aware of in my opinion.
Comment by James on Sat, Feb 28th, 2015 at 11:06 PM
What are the taxes or other ramifications on sending a money gift to anyone in the Netherlands; approximately $5000
Comment by Arjan Enneman on Sat, Feb 28th, 2015 at 11:09 PM
If the person who sends you the money is not living in the Netherlands the gift is tax free (exemptions possible in case this person has the Dutch nationality or was living in the Netherlands recently). There is an article about this topic in the Knowledge Base.
Comment by Sushil on Tue, Mar 17th, 2015 at 12:20 PM
If I want to close my indian account and bring everything to NL account, will there be any tax on that?
Comment by Arjan Enneman on Wed, Apr 8th, 2015 at 4:24 PM
Transfering money from your own Indian account to your Dutch account won‘t lead to additional tax.
Comment by Erica Lagahit on Thu, Aug 4th, 2016 at 9:51 AM
I have been given a donation and trying to transfer it from the bank there to australia where I live does that inccur a tax? If so how is it paid? Why can I not use the money i have in the ba k account there to pay for it? Thanks Erica
Comment by Arjan Enneman on Mon, Aug 29th, 2016 at 2:02 PM
There should not be a tax in the Netherlands for transfering money to another bank account.
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