A new year brings changes to the Dutch childcare allowance. Fortunately, Olaf Lakmaker at Blue Umbrella is here to explain.
This article provides a quick overview of the changes applied to the Dutch childcare allowance for 2016. All changes are pending parliamentary approval. It assumes that the reader is fairly familiar with the workings of the Dutch childcare allowance system.
Dutch Childcare Allowance 2016 – What is New?
All parents eligible for the Dutch childcare allowance will receive more allowance in 2016 (if their circumstances are unchanged). Parents with two children enrolled in daycare will receive between €70 and €100 per month extra in childcare allowance in 2016. For after-school care, this extra allowance is about €50 per month. Please refer to the childcare allowance calculator section below for the precise amount applicable to your situation.
The maximum hourly rate reimbursed by the Dutch Tax Office will be raised in 2016. The following rates apply in 2016:
- Daycare: €6.89
- Homecare: €5.52
- Afterschool care: €6.42
No childcare allowance will be applied to amounts beyond these maximum rates.
If you receive childcare allowance in 2015, than the Dutch Tax Office will automatically continue it into 2016. The amount the Dutch Tax Office calculates for you in 2016 is based upon the latest information you have provided about your family income and childcare hours. If you foresee significant changes in your family income or in the number of childcare hours in 2016, please inform the Dutch Tax Office.
The Dutch Tax Office is gradually reducing the number of paper-based mail sent to tax residents. In 2016, it will no longer send you the childcare allowance calculation on paper. The calculations will be available for you on your Mijn Toeslagen page.
Childcare Allowance Calculator
The childcare allowance calculations are fairly complex. To learn how much childcare allowance you are entitled to, please check with an online allowance calculator. A free allowance calculator can be found here.
Childcare Allowance and the 30 Percent Ruling
If you are eligible for the 30 Percent Ruling, please remember to apply 70 percent of your agreed salary (as stated in your contract) as the basis for the childcare allowance calculation.
Olof Lakmaker works for Blue Umbrella, supporting international residents with their tax and childcare allowance questions. For more information, visit their website, or contact Blue Umbrella on +31(0)204687560 or by e-mail.