Tax news

End of year tips 2011

End of year tips 2011 for individuals, changes in 2012




To cover the costs of childcare, rent or health Insurance the tax authorities pay out tax allowances. These tax allowances can be requested if the requirements are met. Relevant are the income in the tax year and the costs which were made. The request must be filed electronically with the tax authorities. The request for 2011 must be filed before April 1 2012. So if you want to receive an allowance action must be taken. The request can already be filed now. If you are already receiving an allowance in 2011, it should automatically continue in 2012.


Request a refund


A tax return can be filed for the last 5 years. So in 2011 it is possible to file a tax return for the year 2006 onwards. If you can claim a refund for the year 2006 the tax return for this year must be filed before December 31, 2011.


Exemptions for gift duties


If you give money to your child you will have to pay gift duties. There are however exemptions.

Standard exemption: € 5,030
One time exemption for child between 18 and 35

  1. For general expense: € 24,144
  2. For purchase house if the exemption for general expense has been used before 2010: € 26,156
  3. For education or purchase of a house € 50,300


Plan your deductions


The personal deductions like donations, special medical expenses, education costs and alimony are deductible in the year of payment. Determine whether it is better to combine payments in 2011 to reach an applicable threshold or to delay a payment till next year. In a year with a higher income a deduction may lead to a higher tax benefit. For education costs the maximum deductible amount per year is € 15,000. If the costs are higher than this amount it may be better to delay the December payment till January 2012.


Monument – listed building


In 2011 the costs of maintenance of your listed building are deductible. If the property is your main residence also the annual costs plus depreciation of the property are deductible. As of January 1, 2012 the costs of maintenance are only deductible for 80%. The annual expenses and the depreciation are no longer deductible. In this light it can be beneficial to pay certain costs already in 2011 or sign a contract before January 1, 2012 with regards to maintenance in 2012.


Pension gap


If you have a pension gap, because you don’t have a company pension or a company pension which doesn’t cover the whole salary (for example due to the 30% ruling), you can arrange a private pension plan. If the requirements are met the premium for this pension plan is deductible. Determine whether it is better to pay the premium in 2011.


Exempted investments


If you have to declare your savings and investments in box 3 and these savings are higher than the tax free amount, it may be an option to choose for certain environment friendly or social investments which are exempted from tax in box 3.


Provisional refund 2012


If you have certain deductions in 2012 you can request the tax authorities to pay out a monthly provisional refund during 2012. This request can already be filed.


Other relevant changes in 2012


  • New requirements for the 30% ruling
  • Fiscal partnership
  • Threshold for education costs reduced from € 500 to € 250
  • Employee savings totally restructured
  • Self employed deduction for entrepreneurs will be a fixed amount
  • Transfer tax for properties reduced from 6% to 2% till July 1, 2012
  • Interest on tax assessments calculated from 6 months after the end of the tax year. Interest on tax refunds will become rare.


Contact us if you need our assistance.



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