If you have very fluctuating income, it is possible to average your Dutch Box 1 income of three consecutive years. We created a special Averaging Calculator for this.
The conditions to be able to receive an averaging refund are:
- You have to be a resident of The Netherlands in each of these 3 years or be a qualifying non-resident*.
- You need to have a Final Tax Assessment for each of these 3 years, where you no longer can file an objection if you filed a tax return;
- The tax authorities do not calculate this automatically for you. A separate request has to be filed within 36 months after the date of the Final Tax Assessments;
- The difference in tax has to exceed the amount of € 545;
- If you asked for an averaging refund before, you cannot include a year you already included in a previous request.
* You are a qualifying non-resident if you earned at least 90% of your income in The Netherlands.
After the EU-court decision of February 9, 2017, perhaps you can say this dropped to 60%.