Many secondary school pupils and students undertake an internship. In addition to practical experience, this often results in an internship allowance. But do you receive the agreed amount after tax? And do you have toDo I have to pay tax on this? In this article, we explain how it works.
Stage allowance and tax – what does that mean?
When you receive an internship allowance, in most cases it is considered salary by the tax authorities. This means that tax is levied on it, just like a regular job. The company or organisation where you are doing your internship usually already deducts Income tax and national insurance contributions before you receive the reimbursement.
Important to know:
- The internship allowance you agree on is usually a gross amount. Tax is deducted from this before it reaches your account. The difference between Netto – een brutoloon Here you go.
- You can sometimes overpay tax. You can check this and potentially claim it back via your income tax return.
Loonheffingskorting – how does it work?
You can request to apply the tax credit to your internship allowance. This is a reduction on the tax that is withheld, meaning you will have more net pay left over.
Please note:
- You can only have the income tax credit applied by one employer at a time.
- Do you have a part-time job in addition to your internship? If so, have the wage tax credit applied by the employer where you earn the most.
Annual statement and income tax return
At the end of the year, you will receive an annual statement from your internship company. This statement will show what you have earned and how much tax has already been deducted. You will need this information for your income tax return, which can be filed every year from 1 March.
By filing a report:
- Does the Tax Administration check if you have paid too much tax?.
- Is it possible to get money back if too much has been withheld?.
When do you not pay tax?
In some situations, you don't actually have to pay tax on a reimbursement:
- If the reimbursement is intended solely as an expense or travel allowance, it is generally not considered taxable income.
- If the internship allowance is not paid to you personally, but routed through your school or an internship fund, you will not pay tax on it yourself.
