Payroll tax

Taxes: payroll tax or not

How is this arranged if you live abroad?

It is possible that payroll tax and social insurance contributions are due in the Netherlands on your pension. If you are no longer working in the Netherlands and you move abroad, you no longer have to pay social insurance contributions.

Depending on the country where you live, you may have to pay payroll tax. The Netherlands has concluded agreements with various so-called ‘Treaty countries’, clarifying which country can levy taxes.

Requesting exemption from payroll tax

Are you living in one of the Treaty countries? Then you may not have to pay payroll tax in the Netherlands. This is subject to you submitting an application to the Dutch tax authorities (Belastingdienst) on a form called ‘Verzoek Vrijstelling inhouding loonbelasting/premie volksverzekeringen’ (Application for Exemption from the withholding of payroll tax/social insurance contributions). This prevents you from having to pay tax in two countries: both in the Netherlands and in your country of residence.

You can download the form from the Belastingdienst website. Complete, sign and return the form to the Belastingdienst. If you are entitled to exemption, the Belastingdienst will send the original confirmation of exemption to you and a copy to Philips Pensioenfonds. We will then stop withholding payroll tax from your pension. If you relocate to another country outside the Netherlands you should complete, sign and return a new request to the Belastingdienst.

Extending Declaration of Exemption

The Declaration of Exemption is often valid for a number of years. The end date is mentioned on the statement itself and on the pension specification of January in the year that your Exemption expires. Make sure you apply for a new Exemption in time. The processing time differs per application. We recommend applying for the extension with de Belastingdienst, at least 3 months before the end date.

Has your Declaration of Exemption expired?

We will have to withhold tax again from the end date. Your pension benefit will be lower from the month after the Exemption has expired. It is therefore important that you apply for a new Exemption from de Belastingdienst as soon as possible. If we receive the new Exemption Statement before 1 November, we will correct it retroactively from the new effective date of the Exemption. If it is not possible for us to make the correction? You can reclaim the withheld tax directly from de Belastingdienst.