Minister of Finance De Jager increased the personal income tax exemption limit from EUR 43 to EUR 50, for one time only and with retroactive effect. In this way, he prevents single old-age pensioners from having to pay personal income tax in 2009. Last year, due to an extra allowance in the old-age pension (“AOW”) payments, this group received an amount that exceeded the limit by EUR 5, on which they would normally have had to pay income tax. Thanks to this one-time increase, single old-age pensioners need not file personal income tax if they receive only AOW payments, or an AOW pension plus a small pension on which tax has already been withheld.
The Deputy Minister will also ensure that this group will not have to reclaim excess tax withheld in 2010 on the T-form. The Social Security Authority (the “SVB”) has taken this into account in the May vacation payment, which means that there will be no further withholdings other than the personal income tax due.
Anticipating legislative amendments, the 2009 tax return program will be amended, which means that everyone can see whether or not they fall under the exemption limit.