Shocked about AOW without a tax credit

By Submitted Message
Posted in Reader question
Tags: ,
February 4 2019

Dear readers,

Come back once again to the disappearance of the tax credit with AOW. Have indicated that I no longer wish to receive the tax credit, and what do I see at my SVB for February:

  • expected 21-02-2019, € 918,76 (I have been in CM since 1-2-19).
  • recently paid 23-01-2019 € 1146,51 (was still in the Netherlands at the time).

I'm really scared. That is € 230 net less.

Please respond from people who also have AOW (single). What do they receive net since January 2019?

Regards,

Do

19 responses to “Shocked about AOW without tax credit”

  1. Thick says up

    the amount of 918,76 is correct because I also have state pension without a tax credit and receive the same amount.

  2. erik says up

    Both amounts relate to a benefit to someone who lives in the Netherlands. Single, subject to taxation in NL, and withholding the healthcare insurance premium. So after deduction of not only wage tax but also national insurance ANW and WLZ, i.e. the full wage tax.

    My impression is that the gentlemen who get 918 net have not reported their emigration or that this has not yet been processed; the emigration of the questioner is per 1-2-19 I read. The national insurance and health insurance deductions must stop after emigration to Thailand anyway.

  3. Willem says up

    Since 2015, a non-resident of the Netherlands who receives Dutch income is only entitled to (part of) the tax credits under certain conditions. This means that a non-resident of the Netherlands will pay more tax as of 2015. 
    However, the payroll tax credits were almost always applied in full to the Dutch income of non-residents. Employers and benefits agencies (including ABP and SVB) applied these tax credits, resulting in higher net wages/benefits paid out. The Tax and Customs Administration was only able to reclaim the tax credit from non-residents afterwards, by means of the annual tax returns.
    This operation has therefore been reversed with effect from 1 January 2019. As of this year, the payroll tax credit may no longer be applied at source to the wages and benefits of non-residents of the Netherlands. If the non-residents meet the applicable conditions, they can claim the missed payroll tax credit directly from the tax authorities. This can be effected in two ways: i) via a provisional refund during the fiscal year or ii) via the income tax return afterwards.

    "The only difference is that there is no longer an additional assessment due to too much tax credit received," says a spokesperson for the SVB. “Foreign AOW recipients and other beneficiaries who receive too little tax credit can also reclaim this through their income tax. For those entitled to benefits who are entitled to the full levy, there will be no net income effects in 2019.”

    The new situation only applies to countries where the Netherlands applies withholding tax. These are therefore the countries in which the Netherlands itself taxes before, in this case, the AOW income is transferred to the country where the person currently lives.

  4. hanshu says up

    Sounds like a bus….can be seen here: https://www.svb.nl/int/nl/aow/hoogte_aow/bedragen/aow_bedragen_tabel.jsp

  5. Hans van Mourik says up

    Hans van Mourik says.
    Single net is 9% off is 1106 net.
    Do not understand, do you still live in the Netherlands January 2019?.
    If not, that amount of 1146,15 is a provisional assessment for 2019.
    If so, then it is correct, because the provisional assessments will continue for 2 years.
    Example: in 2017 I received a provisional assessment of 1500 euros.
    In 2016 I asked the SVB not to receive a tax credit for 2017.
    Have you paid the provisional assessment for 2017 and no more tax credit.
    They calculate THE provisional assessment for 2015.
    In 2018 I got a defeniteive attack and got 1200 back.
    In 2018 I also received a late assessment, I could possibly change it, I received the forms from the tax authorities, but I did not do it.
    So in 2019 I would get back about 2018 about 1200 euros (my calculation) still waiting for the declaration program 2018/
    Hans

  6. Willem says up

    Dear Will, because you have not moved to a country where you are regarded as a “qualifying non-resident taxpayer” you will no longer receive any tax credits. The fact that you yourself have reported to the SVB that you no longer want that discount is a good thing, otherwise you could have expected a hefty additional assessment next year. But because you live in Thailand, you do not have to pay national insurance contributions: if the SVB does not already calculate this monthly, you will receive a considerable amount back next year after the 2019 tax return. In short: you will no longer receive a tax credit, you will also pay fewer contributions. All in all, one compensates for the other.

  7. richard tsj says up

    This month I received a net 68 euros less AOW.

    • Do says up

      And you have checked at the SVB that you no longer want a tax credit? And you are single I assume. And how much did you receive net this month?

  8. Hans van Mourik says up

    Hans van Mourik, says.
    Full AOW single 2019 is 1215 gross.
    Without tax credit, 9% is deducted, so a total net of 1106 net.
    Hans

    • Walter says up

      With a tax credit, I have 1146 net single

  9. Aloysius says up

    Hello Will

    Yes, that was a shock for everyone, I think, and that is also deducted from your pension, so do the math.

    Have also read something about the Brexit with the state pension.

    Maybe we'll get caught again.

    Fri, Heffingsgreetings Aloysius

  10. Leo Th. says up

    Dear Will, living in Thailand and deregistered in the Netherlands, according to the SVB site, the AOW benefit for a single person, assuming 100% accrual, is € 1215,81. € 227,75 is withheld in payroll tax, so that you receive a net € 988,06. Therefore €69,30 more than the amount you expected of €918,76 and that difference is exactly the amount of the Zvw contribution, which in your case will no longer be deducted from your gross AOW.

    • Leo Th. says up

      I would also like to add that in addition to this amount, the SVB also reserves a gross monthly amount of € 72,44 in holiday pay. As you probably know, it is paid out once a year with the May benefit.

  11. Hank Chiangmai says up

    I was also shocked…..I have € 1450,00 per month for and my wife and have to pay payroll tax
    €130,33 ……while in December the costs were €15,57.
    Answer from the AOW, the tax must be levied. Perhaps there is still to arrange through the. tax authorities.
    Lately I have been in Thailand continuously for 15 years. I signed out nicely and signed up in Thailand..
    Are there also people who have good advice, please keep it recommended... I am 79 years old and have had a severe brain haemorrhage... So I can't handle myself very well...
    Thank you in advance,,
    Henk

    • erik says up

      Henk Chiangmai, there is nothing you can do about it, you are not entitled to tax credits when living in Thailand. That has been since 1-1-2015, but this is only now properly implemented for payroll tax. With the deduction you are off unless you have taxed more income in NL so that you also fall into bracket 2…..I cannot see that here, of course.

      This is a 'gift' from the tolerance cabinet Rutte-Verhagen-Wilders who planned it, only that cabinet died prematurely. In Rutte II it became law. Nothing to do, unfortunately.

  12. Lammert de Haan says up

    Your gut won't let you down, Wil.

    Assume that you have reported your move to the municipality. It is possible that this has not yet been processed by the SVB, although they have access to your date of emigration, the country to which you departed and your address there from the day of deregistration from the municipality.

    Wage tax and national insurance contributions are now withheld up to a percentage of 18,76%. In addition, the income-related healthcare insurance contribution of 5,70% is withheld.

    When living in Thailand, however, you are no longer insured for the national insurance schemes and the Health Insurance Act.

    Ultimately, you will have to withhold wage tax of 9%. Your gross payment of € 1.215,81 results, after deduction of wage tax of 9%, in a net amount of € 1.106,39.

    Keep an eye on this and if things still go wrong the following month, call the SVB. This also applies if the month of February is not corrected after all.

  13. Df says up

    You receive a pension or benefit, etc
    If you do not meet the 90% requirement, but you do meet the other conditions. Then you are still a qualifying foreign taxpayer if you receive a pension, annuity or a similar benefit and do not pay income tax in your country of residence.

    • Lammert de Haan says up

      This is not correct, Df,

      To qualify as a non-resident taxpayer and thus enjoy the same rights as a resident taxpayer (such as the right to tax credits), you must meet three conditions.

      These conditions are:
      a. live in the EU, Iceland, Norway, Switzerland or Liechtenstein, or on one of the BES islands;
      b. 90% of your worldwide income must be taxed in the Netherlands;
      c. you must be able to provide a statement from the competent tax authority of your country of residence.

      In addition, the Netherlands has taken a similar measure by treaty with several other countries.

      If you live in Thailand, you will lose weight at the first best condition.

      It is irrelevant whether or not you pay income tax in your country of residence. If you live in one of these countries, but your country of residence is allowed to levy income tax on your company pension and/or annuity payment, you will lose weight very quickly, as you do not meet the 90% requirement.

      In many cases, the SVB applied payroll tax credits, while people were not entitled to them. In December 2013, as a result of the Tax Plan 2014, the law on this point was already amended with effect from 2015. However, in all that time the SVB has not implemented this amendment in a large number of cases. In many cases, this was found afterwards during an inspection by the Tax and Customs Administration, after which an assessment was imposed.

      In order to put an end to this practice of the SVB in particular, the Tax Plan 2019 provides for a legislative amendment, entailing a total ban on the deduction of tax credits from the wage tax for non-resident taxpayers.

      If you are entitled to tax credits, such as if you live in one of the aforementioned countries, while you also meet the other conditions, you can still get the tax credits by submitting a request for a provisional assessment. If you do not use it, you can always do so by filing a declaration.

  14. John D Kruse says up

    Hallo,

    have a guilder after 100 Euro less!

    Announced through a letter with a malicious undertone, the day after Boxing Day 2018.
    All this via the Internet: My Government-DigiD-SVB notification.
    I wrote to them about it and was called two days ago by a gentleman from the SVB.
    “That they regret that it had come across so negatively””

    Regards,

    John D Kruse


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