Dear readers,
In 2015, the SVB applied a payroll tax credit to the AOW pension of both my wife and me. To be sure whether or not this is justified, we both filed an income tax return for 2016 (early 2015). And yes, Erik Kuijpers was right. Since 1 January 2015, as a non-resident taxpayer in Thailand, you are no longer entitled to the payroll tax credit.
We immediately instructed the SVB to stop applying the payroll tax credit. This took effect on May 1, 2016. Both my wife and I have now paid the income tax due for 2015. However, based on this final assessment of 2015, my wife receives a provisional assessment for 2017, while the SVB therefore simply withholds tax (without applying the payroll tax credit). So this is double.
Immediately called the foreign tax telephone. Person X advised me to send a letter to the Foreign Revenue Service Heerlen. “Changing or stopping a provisional assessment is not possible in this case. This is an assessment that should not have been sent and that must be manually removed from the system”. So I did this, registered on January 9th
To date (February 14) no answer yet. Could still come, of course, but the expiration date is at the end of this month and time is running out.
That is why I would like to ask if there are any readers who have also received an unjustified provisional assessment 2017 and how they resolved this (Incidentally, in the same situation I myself have “fortunately” not received a provisional assessment 2017).
Greetings,
Hans
I don't have a similar situation myself, but the way to deal with this is as follows.
Experience shows that the tax authorities often have a long processing time. Which is often at least 1 month. There are of course exceptions to this.
Did you request a postponement of payment in the letter? If not, you can send a second letter in which you indicate that you have lodged an objection and that you would like to defer payment for the contested amount of the assessment until a decision has been made on your objection. You can send this letter to the same address for the attention of the recipient.
The tax authorities will then grant a deferment of payment. You will probably not receive a message about this in time, but then you will have fulfilled your obligations properly.
My name is called so I respond.
What Quintin advises here is correct; request that the assessment be annulled on the grounds that the income tax due has already been withheld, and at the same time request a postponement of payment. Send the letter by registered mail to Heerlen.
From Thailand the term is longer than if you live in NL; the post costs at least a week and a week back plus the handling time so if it takes two months I'm not surprised. If you have paid too much, you will get it back in good order. I have a correspondence address in the Netherlands and that saves a week in return mail.
I also have this, when the tax credit expired from 2015, I tested whether the SVB would still apply the payroll tax credit if you asked.
Yes, it was done throughout 2015. This shows once again that the SVB does what you ask for, I wanted to test that too.
I filed a tax return for 2015, which rightly resulted in an assessment, which I paid, so nothing special.
In 2016, I had the application of the payroll tax credit stopped by the SVB from March. So after the 2016 tax return, a small assessment was issued with an amount to be paid, which is also correct and nothing special.
In 2017, the SVB will therefore no longer apply payroll tax credits, so there will be no assessment with an amount to be paid after the 2017 income tax return. I will leave this as is under the same circumstances, then no more attacks.
For 2017, I received a provisional assessment in a letter from the tax authorities, stating that it is based on the results of my 2015 assessment, completely correct and normal. I informed the tax authorities by registered letter dated January 13, 2017 that my situation in 2017 is different than in 2015 and requested that the provisional IB assessment for 2017 be reduced to zero.
Until now no message has been received, the assessment must be paid at the end of this month, I can now choose to pay the assessment at once with some discount or in monthly installments up to and including December 2017 or request a postponement of payment.
If I pay the VA 2017 in full or in part, then I do not have to request a deferment of payment, after reduction to nil, the excess paid will be refunded by the tax authorities, I have opted to pay 1 or 2 monthly installments, then the reduction will be have been found to be in order and I will receive the payment back.
If not, I will ring the bell for a reduction and postponement of payment.
Regards,
Nico B
Correction to above attn. 2016:
” In 2016, I had the application of the payroll tax credit stopped by the SVB from March. So after the 2016 tax return, a small assessment was issued with an amount to be paid, which is also correct and nothing special.”
This has to be:
I have not yet filed the 2016 return, I have informed the tax authorities by letter that a return will follow for 2016, and the calculation of the amount due has also been indicated.
Left to the tax authorities to impose a provisional assessment for 2016 or to impose one as soon as I have filed the 2016 return.
Sorry for the mistake.
Nico B