In most cases a tax and premium benefit can be achieved in the year of migration, either moving to or moving out of the Netherlands. As to the premiums this benefit follows from the fact that premium can be calculated on a time related basis. This in practice means that per month no more premium can be due than 1/12 of the maximum annual premium. When the taxable income on annual basis is higher than appr. EUR 35,000, this time related method may well offer a benefit. As to the taxes, employers calculate the wage tax due on annual basis and divide the outcome over 12 months. However due to the progressive rates in the Netherlands it may be that too much wage tax is withheld if the employment is ended during the relevant year. The only way to get a refund of this excess wage tax is to file a personal income tax return. The same applies to get a refund of the excess premium withheld by the employer, also in that case a tax return is to be filed.
The required tax return form in the year of migration is the so called M form. A M form can not be filed electronically but is to be filed on paper by regular mail. We are specialized in dealing with migration tax/premium issues and we file M forms on a regular basis. This means we can handle these M forms efficiently and with the required expertise. Please contact us for a non obligatory fee quote or a personal meeting.
