Many pupils and students complete an internship during their studies. It's a great opportunity to gain practical experience, strengthen your CV, and prepare for a future job or training program. If you receive an internship allowance, you'll also have to deal with the Dutch Tax and Customs Administration. In this blog post, we explain exactly how this works.
Is your internship allowance taxable?
Legally, an internship company isn't obligated to pay an internship allowance. However, many collective labor agreements and agreements between companies and interns do provide for this. If you receive compensation, it's considered salary. Just like with a regular job, you pay tax on it.
Tax on your internship allowance: how does it work?
Your agreed-upon internship compensation is usually a gross amount. Taxes are deducted from this amount before you receive the net amount in your account. Your internship company often handles the tax withholding automatically.
In addition, you must file your income tax return every year starting March 1st. This allows the Tax and Customs Administration to check whether you've paid too much, too little, or just enough tax. In some cases, you can get a tax refund or have to pay extra. You don't have to pay tax on other income, such as student grants or allowances. When filing your tax return, you'll need an annual statement. You'll receive this from your internship provider after the end of the year. This statement lists the salary the internship provider has paid you. It also lists the tax already paid on that salary.
How does payroll tax credit work?
With the payroll tax credit, you can pay less tax, resulting in a higher net amount. But be careful:
- You can only apply payroll tax credit to one employer.
- Do you have a part-time job in addition to your internship? Then apply the payroll tax credit to the employer where you earn the most.
- This prevents you from having to pay extra afterwards.
Want to know more?
Do you have questions about paying taxes during your internship? Please feel free to contact us. Our Service Center can be reached every working day from 8.30:17.00 AM to 0345:851 PM via sc@unie.nl and 963 XNUMX XNUMX.
