Pension and tax
Pensions and taxes are difficult for many individuals, while there are so many opportunities. It goes without saying that you do not file an incorrect tax return, apply prohibited tax constructions or keep a sloppy administration. When you delve into tax matters, or receive expert tax advice on tax regulations and laws, there are important benefits to be gained and you are protected against sanctions, fines, legal proceedings and the like.
Private individuals sometimes need specialist knowledge, for example for calculating taxes, clarity in the tax consequences of pension, inheritance or divorce, making real estate financially transparent, and the like. AGA Fiscalisten has the expertise and experience to fully clarify complex financial issues. Our reliable expert tax specialists, who all have years of experience, see every opportunity. All our tax specialists have years of experience and the mr. title.
Pension and income tax
When you have reached retirement age in the Netherlands, you are entitled to an AOW benefit. You will then receive a basic income based on the General Old Age Pension Act. Previously, this was set at the age of 65. However, the government has decided to make a change to this. Nowadays it is based on the general life expectancy, which progressively increases the age at which one is entitled to this basic income.
At present, you cannot know exactly when you will acquire this right if you were born after 31 December 1960. This is because the general life expectancy for these individuals has not yet been established. However, you can have an estimate made on the SVB website
Change in income tax rate box 1 and AOW when retiring
When you stop working, the income tax box 1 and the national insurance contributions change. Other tax credits will then apply, as well as an adjusted tax rate:
- If the collective income is less than € 37,149 per year, you pay 19.03% tax;
- On the amount of the collective income between € 37,149 to € 73,031 you pay: 36.93% tax.
- On the amount of the aggregate income higher than € 73,031 you pay 49.5% tax.
The rates mentioned above apply to anyone born after 1 January 1946.
Your payment of national insurance contributions will also change. All contributions remain the same except for the AOW contribution, which you no longer have to pay in the year after you have reached retirement age.
If you also have income that is taxed in box 2 and box 3 of the income tax, the following rates will apply in 2023.
- Box 2 : rate of 26.9 %
- Box 3: rate of 32%
Multiple incomes and aggregate income
The aggregate income is all the income you receive added together. Consider, for example, the AOW and your pension. In fact, the aggregate income is about the fact that there are two or more institutions that pay your income. This also applies if you are on pre-pension and are paid by, for example, your employer and pension fund. A tax authority only looks at the aggregate income. It may happen that an employer only looks at the lowest tax bracket, but that part of your income falls into a higher tax bracket due to the aggregate income.
Pension income tax: Tax credit and other discounts
About the tax that is paid, you will receive a discount. There is a general tax credit. The general tax credit is lower if the income is higher. The general tax credit will also be lower when you have reached the state pension age.
In the year in which you have no longer worked and receive AOW, some tax credits will also expire. You will then no longer be entitled to an employment tax credit and an income-related combination discount. In addition, if this applies to you, you may no longer receive a young disabled discount.
If the state pension age is reached, there is also an income-dependent elderly discount. If the aggregate income does not exceed €40,888,-, the discount in 2023 will be €1,835,-. With a collective income higher than € 53,122, you will not receive this discount. By dividing various deductions between your tax partner and yourself, you may still be entitled to this elderly discount.
In addition, you may be eligible for the single parent discount. You can get this if you also receive a single AOW benefit. You can check on the SVB website whether you are eligible for this discount. In 2023, this discount will be € 478.
Healtcare costs
The contribution for the ZVW or health insurance act is paid by the employer, If you retire, you sometimes have to pay this zvw contribution yourself. If you receive AOW, this ZVW contribution is automatically deducted and deducted from the AOW. In 2023, the contribution of the ZVW will be 5.43% of the income. Costs of, for example, a dentist or physiotherapist may be included as deductions in a tax return.
Questions from private individuals about pensions
The following questions that we regularly receive from private individuals:
- How can I best provide for my retirement pension?
- I am missing a pension provider in my overview, what to do?
- What is an indicative pension?
- When is the best time for value transfer?
- How can I best accrue my pension as a self-employed person?
- What are wage stem rights?
- How do I know if I have a pension deficit?
- What is the partner's pension?
Our tax specialists are asked many other tax questions and issues than the above. You can also submit all these questions to us. We provide clarity and solve your tax issue or question.
Why advice on pensions from AGA Fiscalisten?
AGA Fiscalisten stands for high-quality expert tax advice. All our tax specialists are senior tax specialists, have years of tax experience, and have graduated from the university in tax law and hold the title "mr.".
A (senior) tax specialist specializes in tax law while a tax advisor has only completed tax courses. A tax advisor has much less knowledge than a tax specialist and often makes mistakes with potentially significant financial consequences. It is wise not to settle for a non-qualified tax advisor, but to engage an expert senior tax specialist. This way you avoid problems, fines or procedures and you do not miss out on tax benefits due to advice that is not sufficiently expert.
High quality tax specialist; Master title mr. and years of experience
All our tax specialists have years of tax experience and the "mr." title. The most recent developments and changes concern taxation and all relevant legislation is studied and discussed by our tax specialists. This gives us the opportunity to clarify all the problems and issues about taxation. We achieve the best possible result for our customers. Tax advice, tax returns, financial advice, legal advice or discussion partner, AGA Fiscalisten will arrange it for you!
Contact AGA Fiscalisten
The tax specialists of AGA Fiscalisten can do a lot for you, from an answer or advice to your tax questions to guidance throughout the entire process. If you have any questions or issues and would like high-quality tax advice, please contact one of our expert experienced tax specialists for an intake interview free of charge and without obligation.
NEED TAX ADVICE? Call: 040-8489888 1st free and non-binding intake interview. Available by phone: Monday to Friday between 09.00h and 20.00h) We can also be reached by e-mail: info@agafiscalisten.nl or via the contact form on the right side of our website.
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AGA Fiscalisten specialisations
AGA Fiscalisten is at your service regarding:
- Financial advice;
- Tax advice;
- Wealth accumulation;
- Liability;
- Income security;
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- Pension accrual;
- Legal advice (tax lawyers, employment lawyers, corporate lawyers);
- Taxes: gift tax, inheritance tax, income tax, transfer tax and other taxes;
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- Tax profit calculation, assets, lease car, real estate;
- Legal forms: B.V., VOF, partnership, N.V. limited partnership, association, foundation, holding structure etc;
- Tax inheritance law, death, divorce, advice regarding retirement provisions; and
- And so much more...
