Subsidies (toeslagen) in the Netherlands
In the Netherlands there are a number of subsidies (toeslagen) provided as support to low-income people and families. There are also other types of assistance to the poor, which we will discuss separately. In a difficult situation, any help is useful and, if you can get it from the state, it is better to know about it.
In addition, there are payments that are not dependent on your income, for example, payments for children (kinderbijslag). They are not very large, but still nice to receive.
In this article we will talk about
- what subsidies exist;
- how and when they can be requested;
- what is important to know when requesting;
- how long do you have to wait for payments;
- in which cases the payment of subsidies can be stopped
- when it’s important to think about canceling payments by yourself.
There are only four subsidies:
- Zorgtoeslag (health insurance subsidy)
- Huurtoeslag (housing rental subsidy)
- Kinderopvangtoeslag (subsidy / reimbursement for payment of kindergarten)
- Kindgebondenbudget (children’s budget – money for expenses for children under 18, paid if there is a registered child allowance kinderbijslag)
The receipt of each of them has its own requirements and conditions. All of them can be found on the tax website or on our website using the link to each specific subsidy.
How and when you can request subsidies?
Any subsidies are requested until September of the next reporting year. That is, the subsidy for 2019 can be requested until 01-09-2020. Moreover, they can be requested in two ways: in advance (then they will be paid monthly) or one-time for the past year. In the first case, after filing a tax return, a recalculation will be made and you can either pay extra or ask for a refund.
If you want to request a subsidy after September 1 of the following year, this is only possible if a deferral of tax return has been requested. Not the one you can request by yourself, but the one that only your tax consultant (intermediair) can request for you (for example, Nalog.nl). Such a deferment is given for a year and with it the term of the request for subsidies is also extended.Changes to the request can be made before the end date of the requested deferral for submission of the declaration.
What is important to know when requesting?
Since there are conditions for receiving each subsidy, it is important to check every year whether you continue to meet them, as the tax service will continue to pay you subsidies until new information is received. That is why it is very important to inform the tax on time about changes (such as a change in income, buying a house, divorce or marriage, and so on), otherwise they may ask you to return the money paid for a year or even several years.
Sometimes, theoretically, you do not fall under the conditions of subsidies, but in one of the years, for example, you bought a house and you had big expenses. These expenses can reduce your total income so much that this year you can apply for a particular subsidy. If you file your tax return through Nalog.nl we always check all the options.
If you are applying for subsidies, it’s important to file a tax return, even with zero income, as it is a document showing your income level. Otherwise, you may be asked to return the money paid to you. An example is the situation when a person worked and filed a declaration every year. At some point, he stopped working. It seems like he is not required to submit a declaration. However, he may request subsidies. But without a tax return, your income will be considered equal to last year, which means you will not be eligible for subsidies.
All subsidies, even if they are for two (based on total income), are paid to one partner, the one in whose name they are issued. Therefore, when divorcing, it is very important to provide information about the changed situation and request subsidies separately. To be able to request subsidies separately from each other, you must stop being fiscal partners. This is especially important for the party that after the divorce will be in a more difficult financial situation.
In addition, it is important to keep track of who is registered with you at the same address, and also to ensure that you are registered as fiscal partners, since all this affects both payments and whether you meet the requirements for receiving them.
How long do you have to wait for payments?
Subsidies for the next month (in case you requested advance payments) are paid approximately on the 20th day of each month, depending on weekends and holidays. That is, in December, you receive a January payment. It is important to remember this if your situation has changed and you need to cancel the subsidy.
In which cases the payment of subsidies can be stopped?
Subsidies may be stopped, for example, if your residence permit has expired. And until you get a new one, the municipality will stop all payments. Or if you did not pay for insurance – zorgtoeslag (subsidies for paying for medical insurance) will also be stopped.
When it’s important to think about canceling payments by yourself?
This is necessary if you requested advance payments of subsidies and your situation has changed: you have began to earn more, your child has reached 18, you have retired, you have bought real estate, you have got married or divorced, and so on.
If you don’t know what subsidies you are entitled to and how to maximize payments from the state, we will be happy to help with that and much more!
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