Do you live abroad and are you already receiving a pension? Or do you plan to retire outside the Netherlands? If so, you may be able to get a payroll tax exemption. This way, you avoid paying tax in two countries.
You must use a form from the Tax Administration for this purpose. This form is entitled: 'Application for Exemption Declaration for Payroll Tax and/or National Insurance Contributions' and can be downloaded from the Tax Administration’s website. The Netherlands has made agreements with several countries concerning the payment of taxes (tax treaty). Based on the agreements with the country where you live or will live, the Tax Administration will determine whether you are entitled to the exemption.
This is how you should apply for the exemption from the Tax Administration:
- You must use the 'Application for Exemption Declaration for Payroll Tax and/or National Insurance Contributions' form to request a declaration of exemption from payroll taxes and/or national insurance contributions from the Tax Administration.
- The Tax Administration will let you know whether your application has been approved.
- If your application is in order, you will receive a declaration of exemption from the Tax Administration. Make a copy of this declaration and upload it into mypensioencijfers.nl.
Always apply for the payroll tax exemption in good time
The exemption is only valid for a few years. How many years depends on the agreements between the Netherlands and the country where you live or will live. If you are already making use of the exemption, you will receive a reminder from us three months before the exemption expires. You will then have sufficient time to reapply for the payroll tax exemption with the Tax Administration.
If you fail to apply for the exemption on time, we will deduct payroll taxes from your pension. We do not offset payroll taxes retrospectively. You can reclaim the payroll taxes paid from the Tax Administration.
Read more about pension abroad at dowpensioen.nl/gepensioneerde/verandert-uw-situatie/pensioen-in-het-buitenland.
Other questions about your pension?
A lot of information can be found on our website dowpensioen.nl and at mijnpensioencijfers.nl. If you have trouble figuring it all out, please feel free to contact us. Our contact details are on the back of this newsletter.