Personal deductions and allowances for income from labor and main residence (Box 1 income)

For the calculation of the income from labor and main residence (Box 1 income) the Dutch Income Tax Act provides for certain personal deductions and allowances. It concerns expenses/losses incurred by the taxpayer which are not directly caused by a particular source of income, but which are related to the personal circumstances of the taxpayer.

The law provides for the following personal deductions and allowances on the income from employment and main residence:

• premiums for income provisions (in Dutch: 'uitgaven voor inkomensvoorzieningen');
• personal allowances (in Dutch: 'persoonsgebonden aftrek')

The personal deductions and allowances must be claimed in the annual personal income tax return. Under certain circumstances it is possible to apply for a preliminary refund during the year.