The new Dutch tax system guarantees you and your tax partner the maximum benefit

It’s not every day that the Belastingdienst offers to do something to help distribute your benefits for your benefit… but that’s exactly what happens next year. Blue Umbrella explains.

Due to changes in the rules regarding provisional valuation, the Dutch tax office will automatically distribute certain benefits among the tax partners to your best advantage.

If you are an entrepreneur with income tax to report annually, you will normally receive an interim assessment for the following year. This ensures that your (expected) tax bill is spread over the whole year. But it’s also something you might want to ask for, even if you’re an employee and your employer withholds income tax and social security contributions at source.

The biggest benefit for many people is the mortgage interest tax deduction, or hypotheekrenteafrek. This means that part of the interest you pay on your monthly mortgage may be deducted from your income, which may qualify you for a patronage dividend. If this happens on a monthly basis, it can help pay off the monthly mortgage (although you’ll still have to file the full numbers at the end of the year and return any overpayments to the state).

Optimized to the best of your interests and those of your tax partner

From this year, the tax administration will optimize this for tax partners.

Sometimes a 50:50 split isn’t the best option for you, as a 70:30 split can put a tax partner in a lower tax bracket or even offset any tax paid. If, for example, one partner was earning $ 80,000 per year and the other $ 50,000 and they together had a mortgage costing $ 15,000 in annual interest payments, it would make sense to ensure that the partner earned it. higher earners benefit more from this deduction – because it would bring the income into the lower tax bracket of 37.07% (lower than 69.398 euros).

Starting in January, however, the tax office will automatically calculate these numbers for you and apply the mortgage interest tax deduction to the best of your and your tax partner’s interest.

Check the numbers

However, it is wise to check the numbers, especially if anything changes in your income or employment. For some entrepreneurs, who want to keep as much cash as possible in the business and don’t yet owe a lot of taxes, it may be advantageous not to have an interim valuation (although most receive one automatically).

But for homeowners with a tax partner and a mortgage to pay, this year’s tax assessments could bring a ring of slightly better news.

If you need help with your taxes, contact Blue Umbrella via [email protected].


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