Provisional tax assessment
What is a provisional assessment?
A provisional assessment is an assessment based on an estimate of your income and expenses.
There are 2 types of provisional assessments:
- A provisional assessment that you receive after you have filed your income tax return.
If you have filed a final tax return which indicates that you need to pay additional tax or will receive tax back, it is possible that the tax authorities send you a provisional assessment. You do not always receive this provisional assessment; you usually receive a final assessment immediately.
- A provisional assessment that you have requested.
This is the provisional assessment that you have requested because you expect that you will receive or have to pay money back. You will automatically receive it every year. The tax authorities will then base their assessment on your known income. It is an estimate of your income, so the assessment may be too high or too low. You will receive this assessment before the final assessment. If you don’t agree with it you can always request the tax authorities to adjust it.
Why should I request a provisional assessment?
You may want to request a provisional assessment because you want to receive money back from the tax authorities already during the year or because you do not want to pay a large amount at once next year. Paying a tax assessment early will also (significantly) reduce the interest you would otherwise have to pay next year.
Normally, you file an income tax return for the current year after the year has ended, so next year. Once the tax authorities have processed your tax return you will receive a final assessment. You will then receive or pay the money in one amount.
But you can also request a provisional assessment. Then you will already get your refund this year divided over the remaining month instead of next year. Or you can pay a part of what you would otherwise pay next year.
How do I know whether I will get money back or have to pay?
There are various situations in which you may get money back or have to pay.
Do you have high expenses that you can deduct (such as mortgage interest or health care costs)? Or do you have a job on the side while studying? There is a good chance that you will receive a tax refund.
Do you have 2 or more jobs or are you self-employed? Or do you receive an AOW benefit and a pension? If so, you may have to make an additional payment.
How do I apply for a provisional assessment?
Expatax can arrange this for you.
Until when can I apply for a provisional assessment or change it?
That depends on whether you have to file an income tax return for the year for which you want to request or change the provisional assessment. If you have to file a tax return, you will have received a letter about this from the tax authorities.
Do you have to file a tax return?
If so, you can apply for a provisional assessment or change it until the deadline by which your tax return must have been filed. That date is stated in your tax return letter. Have you been given a postponement for your tax return? In that case, the deferral date is also the latest date on which you can request or change a provisional assessment.
You have a postponement until September 1, 2021, for your tax return for 2020. If so, you may apply for or change a provisional tax assessment for 2020 until September 1, 2021.
You do not have to file a tax return?
If so, you can apply for or change a provisional assessment until May 1 following the year for which you want to apply or change the provisional assessment. For 2020, this was possible until May 1, 2021. After May 1, you can only file a direct tax return.
For 2022, a request can be filed as of November 2021.
Do I have to file a request for a provisional assessment every year?
No. You do not have to file a request for a provisional assessment every year. Not even if you have a payable provisional assessment.
This is because the tax authorities automatically renew your provisional assessment for the new year. You will receive it as of mid-December.
However, it sometimes happens that a provisional assessment is not automatically renewed. This can happen if the previous provisional assessment was only applied for during the year and there is a new situation. In that case, a new request can be filed, which will then be automatically renewed.
Does your personal situation change?
Then it may be wise to change or stop your monthly provisional assessment.
Why should I change or stop my provisional assessment?
Because your personal situation changes. And because you still want to receive or pay the correct amount through your provisional assessment this year. So that you do not have to pay more or less next year.
In what situations do you change your provisional assessment?
- You are going to earn more or less.
- You buy or sell a house.
- The interest rate on your mortgage changes.
- You have had a child.
- You are getting divorced.
- You are starting your own business.
- You have reached the AOW pension age.
- Your tax partner has died.
Why do I receive an unsolicited provisional assessment 2021? And what should I do with it?
The tax authorities are increasingly able to estimate in advance how much income tax you will have to pay in the coming year. That is why they send you a provisional assessment for 2021 in January (or during the year 2021).
They do this without asking you. The advantage is that you have to pay as little as possible in addition to your final assessment for 2021. And it is not so strange. Many people already pay taxes in the tax year itself. Without them even thinking about it. If you receive a wage or benefit, your employer or benefits agency deducts tax from this every month and pays it to the tax authorities on your behalf.
Do you have income other than wages or benefits? Or do you have assets, such as savings or shares? Then you will also have to pay tax in the same year, with a provisional assessment.
Check your provisional assessment.
Is the information on your provisional assessment correct and it states that you will have to pay an amount to the tax authorities?
You can choose how:
- in up to 11 instalments: the amount of the 1st installment must be received by the tax authorities before March 1, 2021.
- in amount: if the entire amount has been deposited in the tax authorities’ account before March 1, 2021, you will receive a discount.
Are the details of your provisional assessment incorrect? Then request the tax authorities to change your provisional assessment.
When will I hear about the application, modification or termination of my provisional assessment 2021?
Usually you will be notified within 5 weeks when your application, amendment or termination is sent. But sometimes it takes 8 weeks.
I want to request a direct debit for the 2021 provisional assessment – how does that work?
You request a direct debit via an authorization. You should have received an authorization form for a direct debit together with your provisional assessment 2021.
You didn’t receive an authorization form?
Then request one from the Tax Information Line. You will receive this form within 10 working days.
If you have received an authorization form, please fill it in and send it to the tax authorities. The reply number is on the form.
What do I need to fill in at ‘ascription’?
Fill in the name that is known to your bank. You will find this name on your bank card or bank statement.
When will I be informed?
Within 10 working days after receipt of your form you will receive a confirmation of the authorization from the tax authorities.
Do I have to request a new direct debit for each assessment?
Unfortunately, that is correct. You will receive a new provisional assessment every year. And you must apply for a new direct debit every year.
What if I received an additional provisional assessment after a change?
Then you can apply for a separate direct debit for that assessment.
I have payment arrears
Please note that you can only apply for a direct debit payment if you are no longer in arrears.
When is the amount debited?
The tax authorities debit the tax monthly from your account. The 1st amount 1 month after the date on your assessment. Thereafter, one month later each time.
Your assessment has as date March 14. Then the tax authority collects on or around 14 April, and further every month of that year on or around the 14th. Except in December. In December, the tax authority collects on or just before December 31.
I have applied for a provisional assessment 2021 – how and when will I receive my money?
You will receive a notice from the tax authorities stating how much money you will receive. This is an annual amount, which they will pay to you in equal monthly installments.
You will get the 1st payment about 6 weeks after you apply. The next payments you will get on the 15th of the month. Does the 15th fall on a weekend or public holiday? Then you will receive the money on the 1st working day after that.
Can my provisional assessment also be paid in one go?
Yes, it can be paid in one amount if:
- the monthly instalment amount is less than € 24
- there are less than 2 instalments in the current year
- you receive the assessment after the end of the year
Does one of these situations apply to you? Then you will receive the money in your account within 1 week – after the date mentioned on your provisional assessment.
Settlement with an outstanding amount
If the tax authorities need to set off the refund against an outstanding amount, it may take longer for the money to be transferred.