I have not lived or worked in the Netherlands the whole year. Can I claim a refund?

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Tax refund if you were not in the Netherlands the entire year

The fact that you arrived in or left the Netherlands during the year will almost always lead to a refund. The same if you were not living in the Netherlands at all but only worked here for a short period.

The following reasons can be given:

  • The calculation of the wage tax is based on an (estimated) annual salary. This is your monthly salary times 12 plus holiday allowance.
  • The payroll administration will use the tax rate which is applicable for the annual salary. This tax rate may be lower if you worked in the Netherlands less than 12 months. In the income tax return the real salary will be the basis for the tax calculations.
  • In the payroll administration you will receive 1/12 of the personal tax credit and of the employment tax credit each month. You are entitled to the full credits. So if you have not worked in the Netherlands the whole year you haven’t received the maximum tax credits yet. The difference can be claimed by filing an income tax return.
  • The (maximum) premium income which is the basis for the calculation of premiums social security will be reduced pro rate according to the period of stay in the Netherlands. In the payroll administration this pro rata reduction can’t be claimed, so it will have to be done in the income tax return.
  • Sometimes the 30% ruling has not yet been calculated in the monthly salary since the statement was not received by the employer from the tax authorities before the end of the year. It can then be possible to claim the ruling in the tax return, although this may lead to discussions with the tax authorities who can argue that it is the employer’s responsibility to adjust the payroll administration. There have been situations where the Court accepted the deduction in the tax return.

The above doesn’t mean that you automatically receive back all the paid wage tax. But the refund can be considerable. Expatax can of course help you claim the tax refund you are entitled to.

Expatax can assist you with the tax return.

More information about the M form.