Tax remission

What is it and how does it work?

If you decide to live in an independent household (you have your own entrance, kitchen, and toilet) you will have to deal with Dutch municipal and water taxes. These taxes are arranged by the municipality where you live and can be very costly and the amount can differ depending on where you live. No worries! As a student you can apply for remission, meaning you don't have to pay them provided that you meet the conditions set by the tax offices.

When you apply for remission, you must immediately enclose various documents. Book a consultation with us to find out what you need and how to apply for a tax remission.

 

Once you have submitted your request for remission, you can expect a decision from them within six months. If you do not agree with the decision, you can lodge an appeal within ten days. 

Remission for students


If the landlord charges the municipal taxes in another way, e.g. via the rent, you cannot apply for remission. If you are a student and have received an assessment in your name, then you can apply for remission. In this case, student finance counts as income. Income from part-time jobs also counts as income. The parental contribution does not count.




How is my application for remission assessed?


Not everyone is entitled to remission. There are many laws and regulations that determine when someone is entitled to remission. In short, the assessment of whether you are entitled to remission depends on your income, your assets and whether you own a registered vehicle (e.g. car or motorbike). This is briefly explained below.




Income


First your income is taken into account. This is your salary, benefit, pension, alimony, student grant, income from a business or other income. To see if you fall below the standard amount, tax office deducts several costs from your income. These include part of the rent, part of the health care premium, part of the cost of child care and part of the cost of supporting your children. If you pay off a debt to the National Tax Office, they will also deduct the amount you pay off each month from your income. If the remaining income is below the standard, you may not have to pay your assessment. They also look at the money you have in the bank and whether you have a car or other vehicle with a registration number.




Assets


For your assets, they look at the money in your bank accounts. The money from all your bank accounts (current and savings accounts) is added up. Here too, there are standard amounts that they deduct from the amount in your bank accounts. The amount of capital that remains is your available capital. If this available capital is higher than your tax assessment, you will not be granted remission. If these available assets are less than or partly higher than your tax assessment, and there are no other grounds for rejection, you will be granted full or partial remission. With respect to assets, they also look at whether you have your own home. If you own a house with a surplus value, you are usually not entitled to remission. In addition to money in your bank account and a house, they also look at assets such as shares, a caravan or a boat.




Car or vehicle


Tax office also looks at whether you have a car or other vehicle with a registration number in your name. If this car or vehicle is worth more than € 2,269, you are not entitled to remission. This is different if you need the car for medical reasons. In that case, you can submit a declaration from a doctor or a copy of your disabled person's parking card, if you have one. If you need your car or vehicle for work, you can submit an employer's statement to us. They will then see whether you are still entitled to remission.