NewsCase StudiesEvents

Tax Refund if Your Tax Burden Fluctuated Over a Period of Three Years

Also in the news...

Confined establishments in Great Britain

Lists of confined establishments in Great Britain, Jersey and the Isle of Man approved to export or move ungulates to the EU and Northern Ireland.

Republic of Belarus sanctions: guidance

Guidance on the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019

UK-New Zealand Joint Committee ministerial statement

Details of the Joint Committee held as part of the United Kingdom-New Zealand Free Trade Agreement on 8 May 2024.

Tips for Success in the German Market:

Avoiding Pitfalls and Understanding German Consumer Needs

UK-China Intellectual Property Newsletter

At the end of every month we publish a newsletter covering recent intellectual property (IP) developments in China.

Tax Refund if Your Tax Burden Fluctuated Over a Period of Three Years

Back to News

You could be eligible for a tax refund if your tax burden fluctuated strongly over a consecutive period of three years.

Did you have a highly variable income spread over three consecutive years? Then you probably pay more tax than if you receive that income evenly over a year. You can then qualify for the so called averaging scheme (“middling”).

With averaging you calculate your average income over 3 consecutive calendar years. This is the averaging period. You then calculate how much tax you have to pay per year. Are the new tax amounts lower than those of the previous attacks? Then you may be entitled to are fund.

For whom is averaging meant? Here are a number of example situations:

You got a permanent job after your graduation and you had a part-time job besides your studies.
You received a severance payment (‘golden handshake’) and then a WW benefit.
You have started or stopped working in recent years.
You work as a freelancer or as an entrepreneur.
You have taken unpaid leave (for example for a sabbatical).
You started working part-time.

Are you a foreign taxpayer in one or more of the relevant three years. Then the following applies to the averaging arrangement.

From tax year 2015
You may use the averaging arrangement if you are a qualifying non-resident taxpayer (no longer a choice).

Tax years 2014 and earlier
You may use the averaging arrangement if you have opted for the resident taxpayer as a foreign taxpayer. Or if you earn 90% or more of your total income (worldwide income) in the Netherlands.

We can take care of the entire procedure for averaging. In addition, we can assist you in drawing up your income tax returns.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.