BI_taxes and surcharges | Philips Pensioenfonds

Consequences for your tax, income-related arrangements and/or surcharges

At the time of payment	The following years
You must pay income tax for the 'lump sum’. In the year that you receive the ‘lump sum’, your income will increase. This may put you in a higher tax bracket for a part of your income in that year. Take an additional tax assessment into account. In many cases you also have to pay a premium for the Health Insurance Act (in Dutch Zorgverzekeringswet) on the ‘lump sum’. Do you receive an allowance, such as rent or healthcare allowance (in Dutch: huur- of zorgtoeslag), in the year of payment? In that case, the surcharge can be reduced or even stopped. You may even have to repay (a part of) the allowance already received. Are you eligible for other income-related arrangements? Those can be influenced by the ‘lump sum'. It can even be disadvantageous to choose ‘lump sum’ Does the start of your pension coincide with the month in which you reach your state pension age? Then it is good to know that the law will probably allow you to postpone the payment of the ‘lump sum’. You will then receive the money in January the following year. In that case you may pay less tax on the amount, because an AOW recipient pays a more favorable tax rate for the part of your income in the first tax bracket.	Your monthly pension will be lower if you opt for 'lump sum'. This in turn can be advantageous, for example if it makes you eligible for income-related arrangements or allowances (such as healthcare and/or rent allowance). You can make a trial calculation for surcharges on the website of the Dutch Tax Authorities (in Dutch).

At the time of payment

The following years

You must pay income tax for the 'lump sum’. In the year that you receive the ‘lump sum’, your income will increase. This may put you in a higher tax bracket for a part of your income in that year. Take an additional tax assessment into account.
In many cases you also have to pay a premium for the Health Insurance Act (in Dutch Zorgverzekeringswet) on the ‘lump sum’.
Do you receive an allowance, such as rent or healthcare allowance (in Dutch: huur- of zorgtoeslag), in the year of payment? In that case, the surcharge can be reduced or even stopped. You may even have to repay (a part of) the allowance already received.
Are you eligible for other income-related arrangements? Those can be influenced by the ‘lump sum'. It can even be disadvantageous to choose ‘lump sum’
Does the start of your pension coincide with the month in which you reach your state pension age? Then it is good to know that the law will probably allow you to postpone the payment of the ‘lump sum’. You will then receive the money in January the following year. In that case you may pay less tax on the amount, because an AOW recipient pays a more favorable tax rate for the part of your income in the first tax bracket.

Your monthly pension will be lower if you opt for 'lump sum'. This in turn can be advantageous, for example if it makes you eligible for income-related arrangements or allowances (such as healthcare and/or rent allowance). You can make a trial calculation for surcharges on the website of the Dutch Tax Authorities (in Dutch).

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Phone	+31 (0)88 - 015 79 00
Email	info@philipspensioenfonds.nl

Lump sum

Consequences for your tax, income-related arrangements and/or surcharges

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