Below we will explain the possibility to request a provisional refund. We can arrange this for you whereby we need some information. Look here for the information we need.

If you have income in the Netherlands that is subject to payroll tax, your Dutch employer or payment authority deducts payroll tax from your wage, benefits or pension. This deduction does not take into account your deductible items and some tax credits. If, for example, you have deductible items, then the payroll tax withheld from your wage, benefits or pension is in excess of what you owe as income tax and, potentially, 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 and national insurance contribution form and sending it to the Tax Department. But you can also obtain a refund before this. You can ask the tax office to pay to you the excess amount withheld from your wage, benefits or pension in 2007 in monthly instalments. You can use the Verzoek voorlopige teruggaaf to do this.

Based on the information you provide on the form, the tax office calculates how much tax you will probably have to pay. In addition, the tax office calculates the amount in payroll tax that your employer or payment authority will supposedly deduct from your wage. The difference between these two amounts is the amount you receive from the tax office: your provisional refund. The provisional refund will be paid to you in 2007 in monthly instalments. The tax office will only award a provisional refund if enough Dutch payroll 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;
• premiums towards an annuity and other income provision;
• offsettable losses in previous calendar years from work and home;
• expenses for supporting children younger than 30 years;
• 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.

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.

Special remuneration and the provisional refund

If you are in receipt of special remuneration in 2007 (for instance, holiday pay, bonuses), these are subject to payroll tax in a different way to your normal wage. A provisional refund cannot take account of this. If, as a result, the payroll tax withheld total 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 for 2007. Vice versa, you must repay this amount with your final assessment.

Payment of the provisional refund

If you submit the request before 1 December 2006, you will receive the first payment of the provisional refund in mid January 2007. You will then receive the amount of the provisional refund in 12 monthly instalments. If you submit the request in 2007, you will receive the first payment of the tax credit refund approximately one month after you sent in the request. The amount of the provisional refund will then be paid out over the remaining number of months in 2007.

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 your request for a provisional refund is approved during 2007 and you have received a provisional income tax and national insurance contributions assessment for 2007, the tax office 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 2007. During the first quarter of 2008, you will automatically receive a tax return for 2008. On the basis of your tax return, the tax office assesses 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.

If your situation changes during the course of 2007

If your situation changes in any way during 2007, you can submit a new request for a provisional refund. The tax office 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 2007.

Stopping a provisional refund

If you wish to stop the provisional refund in 2007, you should notify the tax office to which you are subject.

In the following situations, you must always notify the tax office to which you are subject:

• 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.