Reader question: To pay or not to pay taxes?

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6 August 2016

Dear readers,

In May 2013 I formally emigrated from the Netherlands to Thailand and have not left Thailand for a few years. I did get an exemption from paying social security contributions, but I didn't get this for payroll tax because my income, which consists of three parts, is entirely government-related.

Because my income consists of three parts, too little payroll tax is levied. So I still have to pay a lot more. Now I have received a substantial assessment for 2013. The attacks for 2014 and 2015 will follow.

Like many others, I like to pay as little tax as possible. I would prefer to pay taxes here in Thailand, but I don't know if that is possible with government-related benefits?

My question now is, can I do something about this and if so, what can I do?

Thanks in advance!

Best regards,

Kidney

9 Responses to “Reader Question: To Pay Taxes or Not to Pay?”

  1. erik says up

    No, the treaty is binding and takes precedence over national law.

    You can calculate what your annual obligation is and if too little is withheld, you can request a provisional assessment in writing and you can pay it in installments if imposed in the current tax year. This way you know every month what you really have net left over and you can adjust the expenses accordingly.

  2. Francois says up

    If too little payroll tax is withheld, you have to pay extra. For all three sources of income, you must state whether the tax credit should be taken into account. That should really only happen with one source of income. You have probably informed all three that they must apply a tax credit. Then that has happened 3x and you would pay less tax with 3 sources of income than if you had the same income from 1 source. Of course that cannot be the intention. To prevent this from happening in the future, you still have to indicate to 2 sources of income that they no longer take the tax credit into account. Then you will receive less net, but no additional assessments and fines. So on balance better. You have to pay eventually anyway.

    • ruud says up

      There is no longer a Dutch tax credit for people who have emigrated to Thailand.
      Only within Europe and a few other countries.

  3. rentier says up

    A good question! I also stand for this. I still have to deregister, but I already have the 'exemption' application form ready. I cannot return it until I have confirmed all the details and the unsubscription.
    I do not have a large income because I was rightly short on my state pension because of the years that I was not registered in the Netherlands. But with a pension from 'Zorg & Welzijn' I will get there.
    I also do not expect additional assessments after I am exempt from 'Loonbelasting' and withheld 'Zvw'.
    At the moment it is difficult for me to estimate exactly what I will receive in my bank account each month. This makes it difficult for a Visa application where you have to submit income, I don't know myself. It is still unclear to me how to answer a few questions on the form, but hopefully a phone call to the Tax Authorities can help me further. Answering incorrectly may have dire consequences. Even though the amounts are small, I hope to live a long time and enjoy Thailand and those 'small' amounts still come back every month.
    It is a pity that you cannot prepare well in advance for a final departure, because a lot of things have to be done at the very end. If mistakes are still made, then you are far away from solving the problems. Then you are dependent on the Internet and telephone. Hopefully everything will go smoothly and….without additional assessments.

  4. Other says up

    If I were you...I would call the tax authorities (abroad).
    I think it is wise to file a report
    Usually you get money back

  5. carpenter says up

    AOW and government-related income are subject to Dutch tax legislation! So I think the exemption does not apply. Only non-government pensions can be exempted from Dutch premiums and wage tax under current legislation.

    • erik says up

      Incorrect, Tim. After emigration, the levying of national insurance schemes and the levying of the income-related health insurance premium will lapse for all types of income; after all, you are no longer a resident.

  6. gore says up

    Nice thought, but if there is no interest rate decision from the ECB on Sunday and even if that were the case, they will not increase interest rates, especially now that the FED is doing nothing and the BoE has reduced a quarter of a percent.

    • gore says up

      correction: not on Sunday but on Thursday.


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