Tax

Provisional refund

Request for a (monthly) provisional refund


If you have income in the Netherlands that is subject to wage tax, your employer deducts wage tax from your salary. This deduction does not take into account your deductible items and some tax credits. If, for example, you have deductible items, then the wage tax withheld from your salary is in excess of what you owe as income tax and national insurance contributions. Once the tax year has ended, you can receive a refund of the excess amount withheld by filling in an income tax return. But you can also obtain a refund before this. You can ask the tax authorities to pay to you the excess amount withheld from your wage in monthly instalments. The same applies if you receive a pension or benefits from a (public) organisation.

Based on the information you provide on the form, the tax authorities calculate how much tax you will probably have to pay. In addition, the tax authorities calculate the amount in wage tax that your employer will supposedly deduct from your salary. The difference between these two amounts is the amount you receive from the tax authorities: your provisional (or preliminary) refund. The provisional refund will be paid to you during the year in monthly instalments. The tax authorities will only award a provisional refund if enough Dutch wage tax is withheld.


For which deductible items can a provisional refund be obtained?


You can request a provisional refund for the following deductible items:

  • public transport commuting deduction;
  • deduction for the owner-occupied home that is your main residence (the mortgage interest);
  • premiums towards an annuity and other income provision;
  • offsettable losses in previous calendar years from work and home;
  • medical expenses and other exceptional expenses;
  • expenses for weekend visits by seriously handicapped children;
  • study costs and other educational expenses;
  • expenses for protected or listed buildings;
  • donations;
  • alimony and other maintenance obligations;
  • remission of venture capital investments.

For which tax credits can a provisional refund be obtained?


You can request a provisional refund for the following tax credits:

  • child credit;
  • supplementary child credit;
  • combination tax credit;
  • single-parent credit;
  • supplementary single-parent credit;
  • general tax credit (only if you are a partner for tax purposes with no income or a low income);
  • social investments credit;
  • venture capital investments credit.

Can Expatax file a request for a provisional refund for me?


Expatax can file the request for you. Please complete our questionnaire and upload the requested documents. You can find our fee on www.expatax.nl/fees.

For which other expenses can a reimbursement be claimed depending on costs and income?


  • expenses for childcare when both parents work outside the home;
  • rent;
  • health insurance premium.

See also the tax allowances.

 

Special remuneration and the provisional refund


If you are in receipt of special remuneration (for instance, holiday pay, bonuses), these are subject to payroll tax in a different way to your normal wage. A provisional refund can't take account of this. If, as a result, the payroll tax withheld totals more than you ultimately owe by way of income tax and national insurance contributions, you may obtain a refund of this amount when filing your tax return. This is the same if you leave the Netherlands during the year.

Payment of the provisional refund


If the request is submitted before 1 December preceeding the year for which you would like to receive the refund, you will receive the first payment of the provisional refund in mid January. You will then receive the amount of the provisional refund in 12 monthly instalments. If the request is submitted later, you will receive the first payment of the tax credit refund approximately one month after the request is submitted. The amount of the provisional refund will then be paid out over the remaining number of months in the year.

Payment in instalments shall only apply if the monthly amount is EUR 23 or more. If the monthly amount is less than this, payment will be made in one go. 

Provisional assessment


If the request for a provisional refund is approved during the year and you have received a provisional income tax and national insurance contributions assessment, the tax authorities will destroy this assessment before you receive a provisional refund. You do not then have to appeal against the provisional assessment.

 

Final assessment


Final settlement of the income tax and national insurance contributions assessment takes place after the end of the tax year. You will automatically receive an invitation to file a tax return. On the basis of your tax return, the tax authorities assess whether the amount of the provisional refund was correct. Your final assessment will then indicate whether you have to make an additional payment, or will receive money back. You can limit the risk of having to make an additional payment at the time of your final assessment by neither overestimating your deductible items nor underestimating your income. By giving a low estimate for your deductible items you reduce your provisional refund. Also keep in mind that interest will be charged on additional payments you will have to make.

 

If your situation changes during the course of the year


If your situation changes in any way during the year, a new request for a provisional refund can be submitted. The tax authorities will then adjust the amount of the provisional refund.


Your situation may change, for example:


  • as a consequences of a move
  • because you receive income that is not subject to payroll tax (such as alimony, freelance income, income derived from trade or business), or
  • if your status changes from a single parent to a partner for tax purposes during the course of the year.

Cancel a provisional refund

 

If you wish to stop the provisional refund, you should notify the tax authorities. 

In the following situations, you must always notify the tax authorities:


  • if you are no longer in receipt of income in the Netherlands that is subject to payroll tax;
  • if the amount of your deductible items is reduced by a minimum of EUR 5,445.

If your name or address on the form is incorrect or incomplete


The form states your name and address as they are listed in the tax office’s records. If this information is incorrect or incomplete or you wish to change it, you must notify in writing the tax office to which you are subject.

 

Questions answered in our Knowledge Base:


 

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