Reader question: WAO and tax in Thailand

Read carefully what this link and the relevant text from UWV are about, namely: does it concern Dutch people who work in the buyitenland, become ill or incapacitated for work there, and appeal to the WAO from abroad.

UWV provides extensive information on its site about who can move to where with what type of benefit, and how high that benefit may be, or any discounts applied.

To which countries someone can take his/her disability insurance is stated here:
http://www.uwv.nl/particulieren/overige-onderwerpen/internationaal/handhavingsverdrag-naar-welke-landen-kan-uitkering-mee/detail/overzicht-landen-waar-u-uw-uitkering-mee-naartoe-kunt-nemen

If that person can then meet the income requirements for an application for a visa and later for an extension of that visa, nothing stands in the way of actually leaving.

Can you also take a look at the link I found at the UWV and tell me what I read wrong there.
There is also a link there with treaty countries.
It is not the same as indicated elsewhere, by the way.

Dear Gerard,

I can indeed indicate that. In fact: I will do it too (just kidding, if my wife asks me to do something!).

You know the situation as it is as long as you still live in the Netherlands, although the percentages you use are from 2013.
For 2014 these are: income tax 1st bracket 5,1% and national insurance contributions 13,25%. For 2015 these percentages are 8,35% respectively. 10,25%.

As you can see, the income tax rate for 2015 has increased by 3,25%, while the national insurance contribution has decreased by 3%. If you live in the Netherlands, this is almost budget neutral. However, if you live in Thailand, you will only have to deal with the increase in the income tax rate.

In addition to the disappearance of the tax credits for living in Thailand, this is the 2nd tax measure that hits Thailand visitors considerably in the wallet.

Why this transfer from premium to tax?

As of 2015, the AWBZ has been abolished and replaced by the Wlz (Long-term Care Act). This was accompanied by a government cutback operation to further put the national budget in order. The lower costs of care have been accompanied by a reduction in national insurance contributions. But in order to make this budget neutral for the national budget (otherwise there would be no cutbacks), the income tax rate for the 1st and 2nd brackets was increased by 3%. But if you live in Thailand, you no longer owe national insurance contributions, so you will only have to deal with the 3% increase in income tax.
And that is called: “We can't make it more fun” (tax authorities slogan).

You write that you have no idea what the Tax and Customs Administration will deduct from 2015 about AOW that will be transferred to Thailand via the SVB. You also raise the possibility of withholding 19,1%.
In this regard I make the following comments:
1. It is not the Tax Authorities that withhold the AOW, but that is a matter for the benefits agency, in other words the SVB;
2. the percentage of 19,1% is that of 2013 as I noted earlier; for 2015 this is 18,6% for income tax and national insurance contributions together;
3. However, if you live in Thailand, you are no longer part of the circle of insured persons for national insurance and you only have to deal with the income tax rate (2014 5,1% and 2015 8,35%).

If you live in Thailand, you no longer use the facilities in the Netherlands, as you also wrote. But you don't pay a premium for it either.
For this you will have to submit a request to the Tax Authorities, Heerlen - Abroad office.

Is this pure “gain”? Don't count on it! You will have to take out health insurance in Thailand (if you manage to do that at all) and usually for a high premium! Or you have to consciously run the risk of a financial catastrophe.
What is the situation of many Thailand visitors with an AOW benefit at the moment?

For many, the SVB does not currently deduct payroll tax. This is because the tax credits are then higher than the payroll tax owed.
However, as of 2015, the tax credits have expired when living in Thailand and you can expect an additional assessment for 2016 from the Tax Authorities in 2015 of 8,35% (rate for the 1st bracket) of the total AOW benefit received, and that is fast to calculate.
Many Thailand visitors do not take this into account, despite the many warnings that have already appeared on Thailandblog about this!

In my first response I wrote that you can prevent this by submitting a 'Statement of payroll tax' to the SVB. You indicate that the tax credits do not apply to your state pension. However, you can also let it come down to it, knowing that you can expect an additional tax assessment and then set aside money for this.
The choice is yours (apart from a possible fine for not providing the necessary information to the SVB, which I have not yet encountered in practice).

Why does the SVB still apply tax credits when living in Thailand?

I contacted the SVB about this, as I have many income tax clients in Thailand and the Philippines. I received an impossible excuse in response: “We have not received any notice about this from the Tax Authorities.” And that is of course true: the tax credits have not expired in their entirety, but only if you live outside the “EU+”! And that is a legal measure, about which the Tax Authorities, as usual, do not correspond.
They were just not smart enough to refer to Article 29 of the Wage Tax Act, as I wrote in my first response.

I hope this is now clear to you and if not I will read it!

Regards,

Lammert de Haan.

@ruud: stubborn. Click on the link you provided yourself in your previous response. Do not get stuck with the first line, but go further in the context: you will understand that this concerns NL workers abroad, who are (or have become) ill or incapacitated for work, and not existing NL-living Wao people.
This discussion is about the latter group. The link applies to them: http://www.uwv.nl/particulieren/overige-onderwerpen/internationaal/handhavingsverdrag-naar-welke-landen-kan-uitkering-mee/detail/overzicht-landen-waar-u-uw-uitkering-mee-naartoe-kunt-nemen

Believe that WIA is paid for half when you are there.
Over time, benefits abroad will come to an end.
And or be adapted to the local conditions (that will be very little)