Provisional and final income tax refunds

In the Dutch income tax return the ultimate income tax due by the taxpayer is credited with the amount already paid on provisional assessment(s) and other qualifying creditable tax pre-payments.

If a taxpayer expects a tax refund for instance because he/she is entitled to tax deductions or incurred a loss from a private enterprise, he/she can file an application for provisional tax refund (on the basis of a preliminary assessment) which will then be paid in monthly installments during the calendar year, or at once if the tax year already expired.

Also an additional assessment can result in a tax refund.

To date it has been the standard policy of the Dutch tax office to process the income tax return filed as soon as possible and arrange to issue the preliminary income tax assessments before 1 July if the tax return has been filed before 1 April. If the tax return results in a refund, the refund is also paid to the taxpayer before 1 July. If filed after 1 April, the Dutch tax authorities aim to process the income tax return within 3 months.