Good day
I started working in the Netherlands in November last year.
Earned total income of around EUR8,000 for the year (Nov + Dec). Does anyone know if the full tax credit (Algemene heffings korting = EUR 2,254 and Arbeidskorting = EUR481) applied if you only worked for two months of the year? Or does it get prorated by e.g. 2/12?
When completing my tax online (belastingdienst website), it showed that approx EUR 2000 tax was withheld by my employer, that my total tax bill was approx EUR2,000 an that the impact of the heffingskortings is 2735.
Since the total tax paid was less than the heffingskorting, the calculation showed that the full tax that withheld by my employer is due back to me.
However, when I asked a tax consultant to assist me with my tax, they applied a prorated heffingskorting, which meant that only EUR700 was due to me instead of EUR2000.
Does anyone have experience in this?
Expat income tax - only 2 months of work
Hi and welcome to the Forum,
My experience is that personal tax relief and allowances are based on income earned, not potential, so is pro-rated. If you only worked for 2 months, then you only qualify for 2 months worth of relief/allowances.
Assuming you have moved to Holland (i.e. not just going there for 2 months and then returned to SA), the Belastingdienst would also have taken into account any world-wide earnings you made prior to you moving to Holland In Nov (so, for the whole tax-year Jan > Dec 2017); assuming a double-taxation agreement exists between SA/NL which would exempt you from paying 2 lots of income tax, they can still levy social taxes on all worldwide income received in that period - these are not part of any double-taxation agreement.
Hope this helps.
Cynic
Expat Team
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