The issuance of a conservering assessment (conserverende aanslag)

In the event a resident taxpayer emigrates from the Netherlands, the Dutch Tax Authorities issues a so-called protective assessment (in Dutch: 'conserverende aanslag'). A protective assessment is in essence a normal tax assessment, with the special aim to preserve/protect the Dutch tax claim on income that has been accrued during the period of residency, but has not been taxed yet.

The protective assessment shows the amount of tax due. Revisionary interest is usually charged as well. The protective assessment does not become payable right away. The period of validity of a protective assessment is 10 years. If a taxpayer does something that is not allowed under the Dutch tax regulations during this period of validity, this triggers the protective assessment to be paid immediately.

Examples of when a protective assessment will be imposed after a taxpayer migrates out of the Netherlands are when a taxpayer has:

• accrued pension rights in the period that they lived in the Netherlands;
• entitlement to payments under an annuity insurance policy, annuity savings account or annuity investment account;
• the right to the benefit from an owner occupied capital sum insurance, owner occupied home savings account or owner occupied home blocked investment account;
• a substantial interest in a company that is established in the Netherlands.

As from 15 September 2015, the regime of the protective assessment on emigrating substantial shareholders  has been changed. The conserving assessment will not be automatically remitted after the extension period of ten years.

These changes mean that the Netherlands will not waive the tax claim after a certain period of time. The extension period is indefinite and the tax claim must be paid eventually. The aim of these changes is to neutralize the effect of migration. The tax claim will be the same for resident taxpayers as for migrated non-resident taxpayers.

For already issued conserving assessments the 'old regime' will remain applicable.