How to Settle Tax from the Netherlands for 2024? Guide with Examples

All individuals who legally worked in the Netherlands can apply for a tax refund. Additionally, you have the option to settle up to 5 years back (for the years 2020-2024). The Dutch tax office (Belastingdienst) takes from 3 months to even 3 years to process the application, but with the Aangifte24 app, which allows you to send a preliminary decision request, you can receive a refund within 4 weeks. Check the details and start your settlement at aangifte24.com.

To correctly settle the tax, you need to prepare the following documents:

  1. Jaaropgave or Salaris
Jaaropgave (annual tax card) is the most important document confirming your income and tax prepayments. In the absence of Jaaropgave, you can use Salaris slips (monthly statements).

  2. BSN Number
This is a unique 9-digit identification number necessary for settlements.

  3. Income Certificate (EU/WE Form)
Required if you worked in the Netherlands but live in Poland. You will receive this certificate from the Polish tax office.

  4. Tax Forms
 - Form C: for non-residents in the Netherlands.
 - Form M: for those registered for part of the year.
 - Form P: for those registered for the whole year.

  5. Bank account number for the tax refund transfer

Note! The settlement must be made on the appropriate form, depending on your registration status.

The obligation to settle tax from the Netherlands applies to individuals who: 
 - have a tax refund above 14 euros,
 - need to pay more than 45 euros,
 - received a summons to submit a tax declaration.Do not ignore settlement summons! Failure to comply can result in high penalties.

The Netherlands offers a range of tax reliefs that Poles working in this country can benefit from:

1. Child Relief (Inkomensafhankelijke combinatiekorting)
   • Applies to parents raising children up to 12 years old.
   • Requirement: joint registration with the child for at least 6 months in the tax year.
   • Minimum gross income:
     • 2020: 5073 euros
     • 2024: 6073 euros
   Example:
   Anna is a single parent and earned 15,000 euros gross in 2024. Thanks to the child relief, she can receive a tax refund of about 1150 euros.
2. General Relief (Algemene heffingskorting)
   • Available to anyone who worked in the Netherlands, regardless of income.
   • The relief amount decreases with higher incomes.
     Example:
     Jan earned 20,000 euros gross in the Netherlands. Thanks to this relief, he can expect a refund of about 300 euros.
3. Employment Relief (Arbeidskorting)
   • Granted to individuals employed in the Netherlands.
   • Depends on the gross income and the number of hours worked.
4. Fiscal Partner Relief (Heffingskorting voor fiscale partner)
   • Applies to spouses or individuals in a shared household.
5. Commuting Relief (Reiskostenvergoeding)
   • You can deduct commuting costs if your employer does not reimburse your transport expenses.

Poles working in the Netherlands are obliged to settle their income also with the Polish tax office. These incomes are reported on the PIT-36 form with the ZG attachment.

Proportional Deduction Method:
 - Income earned in the Netherlands is taxed in Poland.
 - You can deduct the tax paid in the Netherlands from the Polish tax, but only up to the amount of tax due in Poland.

Example Calculation:

• Income in the Netherlands: 40,000 euros (gross)
• Tax paid in the Netherlands: 6,000 euros
• After conversion (rate: 4.5 PLN): 180,000 PLN gross income.
• In Poland, the tax would be: 24,300 PLN.
• Deduction of Dutch tax: 24,300 PLN - 27,000 PLN = no additional payment in Poland.

NOTE: You must report all income earned throughout the European Union, even if it was taxed in another country.

Zorgtoeslag is a health supplement available to individuals with low incomes, covering part of the health insurance costs in the Netherlands.

Eligibility Conditions:

 1. You must be insured in the Netherlands.
 2. Your gross income must not exceed a certain limit (approx. 38,520 euros for one person in 2024).
 3. You must apply through the Belastingdienst website or use the Aangifte24 app.

Example:
Piotr earned 1,800 euros gross per month. Thanks to Zorgtoeslag, he received a refund of insurance costs amounting to 154 euros per month.

1. Arbeidskorting (Employment Relief):

Calculation Rules:
Employment relief depends on the annual gross income and the number of hours worked. Its amount changes depending on the income bracket:

• For incomes up to 10,000 EUR, the relief is 1.9% of the income.
• Between 10,000 EUR and 37,626 EUR, the relief gradually increases.
• For incomes above 37,626 EUR, the relief gradually decreases.

Example Calculation:

• Gross income: 40,000 EUR
• The relief is calculated according to thresholds:
  • Up to 37,626 EUR: the full relief is a maximum of 5,052 EUR.
  • Above 37,626 EUR: the relief is reduced by 6.51% of the income exceeding this threshold.

Calculation for 40,000 EUR:

• Income exceeding the threshold: 40,000 - 37,626 = 2,374 EUR
• Relief reduction: 2,374 EUR × 6.51% = 154.59 EUR
• Final relief: 5,052 EUR - 154.59 EUR = 4,897.41 EUR

Arbeidskorting relief amounts to: 4,897.41 EUR. 

2. Inkomensafhankelijke combinatiekorting (Child Relief):

Calculation Rules:
Child relief is available to individuals raising children up to 12 years old and having a gross income above the set minimum. In 2024, the minimum income is 6,073 EUR. The relief is calculated as:

• 11.45% of the income amount above 6,073 EUR,
• The maximum relief is 2,887 EUR.

Example Calculation:

• Gross income: 40,000 EUR
• Income above the minimum: 40,000 - 6,073 = 33,927 EUR
• Relief value: 33,927 EUR × 11.45% = 3,882.85 EUR

Since the maximum relief is 2,887 EUR, the relief is limited to this amount. Inkomensafhankelijke combinatiekorting amounts to: 2,887 EUR.


Summary of Calculations:

• Arbeidskorting Relief: 4,897.41 EUR
• Inkomensafhankelijke combinatiekorting: 2,887 EUR

The total value of tax reliefs for a person earning an income of 40,000 EUR annually is 7,784.41 EUR. Thanks to these reliefs, the tax burden is significantly reduced, allowing for a higher tax refund or a smaller additional payment to the office.

With the Aangifte24 app, you can quickly and effortlessly settle tax from the Netherlands. What distinguishes the app?

• Intuitive interface: guides you step by step through the entire process.
• Support in Polish: ideal for those who do not know Dutch.
• Reminders about reliefs: the app automatically suggests which reliefs you can use.
• Secure document transmission: Your data is protected and encrypted.

Visit aangifte24.com and settle your tax today!