Averaging Income

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:

1. You have to be a resident of The Netherlands in each of these 3 years or be a qualifying non-resident*.
2. 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;
3. 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;
4. The difference in tax has to exceed the amount of € 545;
5. 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%.