Will the withheld premiums social security be reimbursed to me when I leave the Netherlands?
Article ID: 183 | Last Updated: Thu, Feb 16, 2012 at 9:20 AM
I want to know the details of the tax Premium Industrial life assurance ( LB/PR VOLKSVZ). Actually 30% of salary is deducted from my salary as Premium Industrial life assurance. We got the VISA for 6 months (from 1st Jan 2012 to 30th june 2012). But we came here on 3rd Jan 2012 and i am going to stay here till 31st march. Actually I was transferred as an employee from India to Netherlands for the above period. I want to know whether i can get the amount back or not. And I want to know if I can get it back how I can apply for the tax return.
From the moment you arrive in the Netherlands you are insured for the Dutch national insurance. This is different if you are insured in another country based on a social security treaty or EU regulations (A1 declaration).
When you earn a salary the premium is automatically withheld by your employer every month. Your employer will withhold one amount which covers two parts: wage tax ("LB") and premiums social security ("Premie volksverzekeringen"). As mentioned the social security is a national insurance, it is not an individual insurance and also has nothing to do with a life insurance. These insurances cover certain special expenses which are made in the Netherlands for all people in general and are supposed to be paid by everybody with an income. Therefore these premiums will not be reimbursed when you leave the Netherlands or haven't been able to benefit of these insurances.
However, your employer must withhold these premiums (and wage tax) on a monthly basis as if you are living/working in the Netherlands the entire year. This means that if you are only in the Netherlands for part of the year, the withholdings will have been too high. Your employer can't change this though. So instead you will need to file a tax return to get the amount reimbursed which you have paid too much. Unfortunately this can only be done after the end of the year. See also http://www.expatax.nl/kb/article/i-have-not-lived-or-worked-in-the-netherlands-the-whole-year-can-i-claim-a-refund-96.html. If you will be in the Netherlands for only 3 months a big part of the withheld wage tax and premiums social security may be refunded to you.
Expatax can of course assist you with filing this tax return, the so called M form.