Important change to the taxation of WIA benefits in Germany

25. October 2022

Residents of Germany who receive a WIA, WAO or WAZ benefit from the UWV from the Netherlands should note that their benefit will be taxed in the Netherlands from 1 January 2023, regardless of its amount.

Until the end of 2022, the said benefits will still be taxed in the Netherlands if the sum of benefits and pensions from the Netherlands exceeds an amount equal to €15,000 gross per year. If the income is less than € 15,000 gross per year, it will be taxed in Germany until now and no income tax will be withheld in the Netherlands. This rule, which is based on an income limit of € 15,000, will be abolished for the aforementioned income on 1 January 2023, so that WIA and WAO benefits will always be taxed in the Netherlands from that date.

Anyone who has been exempted from wage tax and social security contributions by the Dutch tax authorities will have this exemption cancelled as of 1 January 2023. If your WIA – or WAO – benefit does not include deductions in January 2023, you can contact the Belastingdienst Buitenland in Heerlen, telephone number 0031 55 5385385.

The change is due to a change in the tax treaty between the Netherlands and Germany. For the taxation of old-age pensions and annuities, the income limit of €15,000 still applies.

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