End of the year tip 1 – Your capital

There are multiple things that you can do before 31 December 2019 to save some tax in 2020. The TaxSavers will give you a number of tips to save some tax next year. Our first tip is about your capital.

Capital limit tax

Capital limit annual income tax return

In the Netherlands, you can have tax-free capital up to a certain limit. This limit will rise to €30.846,- in 2020 if you are alone and to €61.692,- if you have a tax partner. If you have more assets than this limit, you must pay in box 3.

The Belastingdienst looks at all your assets on January 1 each year. So if you expect that you have more capital than the limit on January 1, 2020, it may be wise to do some large expenses in 2019. For example, look at the terms and conditions of your health insurer. Some health insurers give a discount if you pay the entire health insurance premium for 2020 in one go before December 31, 2019, a win-win situation.

Another smart trick to do, when you have more assets than the limit, is to pay off small debts. You can only deduct debts from your assets if they are higher than €3.100,- if you are alone and €6.200,- if you have a fiscal partner. By paying off debts lower than this limit, you, therefore, lower your assets in box 3 and you have to pay less tax.

Benefits

Your capital is not only important for the annual income tax return. Most benefits also have a capital limit. The Belastingdienst also looks for the benefits at all your assets on January 1 each year. In the overview below you can see the different capital limits. Please note that it is not only the capital limit that is important, you must also meet other conditions (for example, the income limit) per benefit. Read more about the other conditions on the website of the Belastingdienst.

AloneWith fiscal partner
Rent benefit€30.846€61.692
Healthcare allowance€116.612€147.458
Child benefit€116.612€147.458

The TaxSavers is happy to help you with saving tax. Leave your details in our contact form or call us on +31 (0)20 – 2170120.