Settlement Agreement + response before 1 January 2018

Pensioners from a number of international organisations (e.g. EPO, ESTEC, NATO) who retired after 2010, will receive a choice form from the Dutch tax authorities around this time. With this form a choice can be made between the balance method and the splitting method (see previous news items). After choosing, the pensioner receives a settlement agreement (VSO). The tax returns and assessments of the years after retirement will be adjusted and determined according to the method chosen.

When you return the signed VSO, a calculation should be provided indicating how to adjust the income in box 1 and box 3 and how to account for losses and a residual personal deduction. The assessments 2010 and 2011 (against which objections can no longer be lodged) will not be taken into account. This implies that 2012 is the oldest year to be eligible for one of the two methods. However, that request must have been submitted before 1 January 2018.

If you think you qualify, please contact me as soon as possible!