Imposing a protective assessment (conserverende aanslag)
In the event that a resident taxpayer emigrates from the Netherlands, the Dutch Tax Authorities issue a so-called protective assessment (in Dutch: “conserverende aanslag”). A protective assessment is in essence a normal tax assessment, with the special aim to preserve/protect the Dutch tax claim on income that has been accrued during the period of residency but has not been taxed yet.
The protective assessment shows the amount of tax due. Revisionary interest is usually charged as well. The protective assessment does not have to be paid right away. The period of validity of a protective assessment is 10 years. If, during this period of validity, a taxpayer does something that is not allowed under the Dutch tax regulations, the protective assessment has to be paid immediately.
Examples of where a protective assessment will be imposed after a taxpayer migrates out of the Netherlands are:
- Accrued pension rights in the period that an individual lived in the Netherlands;
- Entitlement to payments under an annuity insurance policy, annuity savings account or annuity investment account;
- The right to te benefit from an owner occupied capital sum insurance, owner occupied home savings account or owner occupied home blocked investment account;
- Having a substantial interest in a company that is established in the Netherlands.
As from September 15, 2015, the regime of the protective assessment on emigrating shareholders for substantial shareholders has been changed. The protective assessment will not be automatically remitted after the extension period of ten years.
These changes result in that the Netherlands will not forgive a tax claim after a certain period of time. The extension period will be “forever” and the tax claim must be paid eventually. The aim of this change is to neutralize the effect of migration. The tax claim will be the same for resident taxpayers as for migrated non-resident taxpayers.
For protective assessments that have been issued before September 15, 2015 the 'old regime' will be applicable.
| The above information is prepared with utmost care, but it cannot be guaranteed that the rules have not changed since the date of publication or that your personal situation triggers the application of specific rules which deviate from the above. Before you use this information we therefore strongly recommend that you consult us to determine your personal Dutch income tax position. If you require our follow up, you can contact us via e-mail or call us at our offices in Amsterdam + 31 (20) 570 9440 or Rotterdam + 31 (10) 2010466. |