calculating benefits under the wuv act and the wubo act ... · - the tax credit – this may be...

Calculating benefits under the Wuv Act and the Wubo ActA guide to the decision determining the amount of the benefit and the payment notification

Contents What you will find in this brochure 2

The decision determining the amount of the benefit 3

The payment notification 6

Types of financial support 8

Monthly benefit: how it is determined 9

Monthly benefit: the base amount 11

Monthly benefit: the benefit rate 12

Monthly benefit: supplements 14

Monthly benefit: deduction of other income 16

Guarantee benefit (Wubo Act) 19

Contributions towards costs 21

Tax issues 23

Allowance for income-related health insurance contribution 24

If you benefit is overpaid or underpaid 24

Glossary of terms 25

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Calculating benefits under the Wuv Act and the Wubo Act 2 of 27

This brochure contains general information on the decision

determining the amount of the benefit and on the payment

notification under the Wuv and Wubo Act. The decision is a

letter stating and explaining your benefit as it has been

awarded or reassessed. If you are paid an advance on your

benefit, the decision will say so as well. A payment notification

is an overview showing the total amounts of your monthly

benefit and any reimbursements or allowances that have been

awarded.

What you will find in this brochure

This brochure covers the following topics: - the decision determining the amount of benefit; - the payment notification; - the various forms of financial support; - the calculation of the monthly Wuv or Wubo benefit; - the calculation of the guarantee benefit under the Wubo Act; - contributions towards expenses under the Wuv Act and the Wubo Act; - tax issues; - the supplement for the income-linked health insurance contribution; - overpayments.

This brochure is meant to be a reference document. It is not necessary to read it through completely in order to understand the decision or the payment notification you have received.

Not all the topics discussed in this brochure will be included in every decision. It depends on what the application was for. The decision only concerns your own application.

The most important terms specific to the Wuv Act and the Wubo Act that are used in this brochure are explained in the glossary. This brochure will only be sent to you once. Please keep it for future reference.

If you need more informationAfter reading this brochure, if you still have any questions about the decision or the payment notification, or about the brochure, you can phone us on the telephone number shown in the top right-hand corner of the decision or the payment notification. If you phone for information, please have your correspondence number at hand so that we can look up your file quickly.


The decision determining the amount of your benefit

What does the decision contain?The decision is a letter stating and explaining your benefit as it has been awarded or reassessed. If you are paid an advance on your benefit, the decision will say so as well.

When will you receive a decision determining the amount of your benefit?You will receive such a decision only in a limited number of situations. This will be the case: - when the amount of your monthly benefit is first determined, which is after

your benefit is awarded; - if the amount of your monthly benefit is reassessed; this only done if there

are changes in your personal circumstances; - if you are paid an advance on your monthly benefit, which is the case if we

are unable to determine the amount of your benefit because we have not yet received all your income details.

Request for review/objectionYou can submit an objection against a decision determining the amount of the benefit. The time limit for this is 6 weeks for people who live in the Netherlands and 13 weeks for people who live outside the Netherlands.

For more information about submitting a written objection (also known as a request for review), a special leaflet is available about the objection procedure. You can request the leaflet from the Department for Members of the Resistance and Victims of War (telephone +31 (0)71 535 68 88) or download it from our website (www.svb.nl/wvo).

How the decision is structuredThe decision gives information in short blocks of text. Each block starts with a heading. Under each heading, specific details are listed that played an important role in establishing or reassessing the amount of your benefit. This structure is designed to give you a clear overview of the information you need.

Below is a list of the text blocks used in a decision and an explanation of the information they contain.

Block with personal details (top right)In the block with your personal details, at the top right of the first page of the decision, you will find the following details: - your correspondence number; - your ‘Burgerservicenummer’; - the subject of the decision; - the number of the decision; - the telephone number you can phone for more information on the decision; - the date of the decision.


First paragraphThe date as from which we established the amount of your benefit (on the basis of the Wuv Act or the Wubo Act) is stated in the first paragraph.

DecisionHere, you will find the monthly amount of the benefit on the commencement date of the decision. This is the gross monthly amount of the monthly benefit or income guarantee benefit. The amounts of tax-free supplements and the contributions towards costs in the form of periodic reimbursements or allowances are stated in another part of the decision.

ExplanationUnder this heading, you will find more information on the decision. This concerns matters such as the commencement date, personal circumstances, sources of income and contributions towards costs. The decision determining the amount of your benefit may not cover all these topics. The information contained in the decision depends on what applies to you specifically.

- Commencement dateUnder this heading, you will find information on the commencement date of the determined or reassessed benefit.

- Personal circumstancesUnder this heading, the personal circumstances are listed that were taken into account in calculating your benefit. These are details such as your date of birth, your age and your civil status.

- Benefit amountHere, the base amount and the benefit percentage are stated. If any supplements were taken into account in determining the benefit amount, they are stated here as well.

- IncomeHere, you will find the other sources of income taken into account in calculating your benefit – for example, income from AOW old age pension, private pensions or assets. The amount by which your benefit is reduced is stated for each of the sources of income. In many cases, the amount deducted will be lower than your actual income from other sources.

- Tax-free supplementsUnder this heading, you can see whether a tax-free supplement is applicable. This may be the amount mentioned in Article 21b of the Wuv Act (NMIK) or the supplement named in Article 19 of the Wubo Act. The monthly amount of a supplement is stated as well. For more information on these supplements, see the section on types of financial support.


- Contributions towards costsHere you will find the monthly amounts of your reimbursements or allowances and the total amount payable in contributions towards costs as of the commencement date. If you receive a contribution towards the costs of extra holidays, this will be stated once a year in May on a payment notification.

Calculation (table)This table shows the most important amounts used in calculating your benefit: - ‘Benefit amount’ is the base amount times the benefit percentage + any

supplements; - ‘Deductions for other income’ is the amount of your other income that is

deducted from your benefit; - ‘Benefit amount payable’ is the ‘benefit amount’ less the ‘deductions for

other income’.

In addition to showing your benefit, this table may also show amounts for ‘tax-free allowances’ or ‘total amount payable in contributions towards costs.

- OverpaymentIf applicable, this is the place for a notice stating that when the benefit was determined, it turned out that you had received an overpayment, about which you will be informed in more detail later.

- Further informationHere, you are referred to the payment notification for the amount you will receive (including any reimbursements or allowances). A telephone number is given that you can phone if you have any questions.

- Legislative Articles on which the decision is basedUnder this heading, you will find a summary of the Articles which served as the basis for the decision. The complete text of these Articles can be found on our website (in Dutch) at www.svb.nl/vwo via ‘Compleet overzicht’ - ‘Wetteksten’.

Heading: Request for review/objectionUnder this heading, you can see what to do if you do not agree with the decision on your application. It also states how much time you have to lodge an objection.

SignatureThe signature on the decision shows which employee of the Sociale Verzekeringsbank (Leiden Branch Office) is responsible for the decision.


Further informationAfter you receive the decision determining the amount of your benefit, a more detailed overview of the calculation can be forwarded on request. The telephone number is shown at the top of the decision.

The payment notification

What is a payment notification?A payment notification is an overview of the amounts of your monthly benefit and any periodic contributions towards costs (reimbursements/allowances). The payment notification shows the totals of the various calculations and the amount that is remitted to your account. You will receive a payment notification each time your payment changes.

When do you receive a payment notification?You will receive a payment notification when your benefit is first calculated (or if you are paid an advance). After that, you will receive a payment notification each time your payment changes. The payment will change if the amount of your benefit is reassessed (in which case you will also receive a decision determining the amount of your benefit). It will also change when periodic adjustments are made to your benefit (based on the indexation of the statutory minimum wage). Such adjustments are usually made in January and July of each year.

Request for review/objectionIn principle, you can lodge an objection against a payment notification, but not necessarily against all the elements it contains. If you object to elements that are included in a previous decision, you can lodge an objection against that decision. If the payment notification has been sent to notify you of a general increase in the benefit or changes in taxes or social security contributions, you cannot lodge an objection because such decisions are not taken by the Sociale Verzekeringsbank or the Pension and Benefit Board.

How the payment notification is structuredOur payment notification is an overview of amounts. The amounts are arranged in a number of blocks. This structure is designed to give you a clear overview of the information you need.


Block with personal details (top right)In the block with your personal details, at the top right of the first page of the decision, you will find the following details: - your correspondence number; - your ‘Burgerservicenummer’; - the telephone number you can phone for more information; - the table – here it will always say ‘green’ (‘groen’). - the tax credit – this may be marked ‘0’ or ‘1’: ‘0’ if no tax credit is applied

and ‘1’ if a tax credit is applied. - the status of the payment: advance payment or fixed benefit payment.

Month Here, the most important payment details for the month are stated. They include: - the total amount in reimbursements; - the total amount in allowances; - your financial capacity (personal contribution towards allowances); - the total amount in reimbursements and allowances less your personal

contribution; - the (gross) amount of your benefit (plus the supplement under Article 19 in

case of the Wubo Act); - the amount in compensation of the costs of health insurance (Zvw). In

practice, this applies only to people living in The Netherlands; - the subtotal (this is the total amount of reimbursements and allowances,

benefit (and the supplement under Article 19 in case of the Wubo Act) and compensation for health insurance, if applicable;

- the taxable amount (in principle, only the benefit is taxable); - the amount of tax and social security contributions (this includes the health

insurance contribution); - the net total amount payable in contributions towards costs and benefit

(and the supplement under Article 19 Wubo, if applicable).

PaymentsHere, you will find: - the account number to which payment is made. If you have a bank account

outside The Netherlands, nothing is entered here; - the amount remitted to this account; - a brief mention of what the payment is for (for example: Wuv benefit

January 2016).


Cumulative totalsHere, you will find the cumulative details (totals) of the taxable payments for the current year. These details relate only to the payments of monthly benefit or guarantee benefit. Other payments, such as the supplement under Article 19 or reimbursements and allowances, are not taxable and are therefore not shown in this block. If overpayments have been calculated, they will appear in this block as well.

Types of financial support

Different types of financial support may be mentioned in the decision and the payment notification.

The various types of financial support are: - a monthly benefit (Wuv Act and Wubo Act); - a guarantee benefit (Wubo Act); - a supplement under Article 19 (Wubo Act only); - an amount under Article 21b (Wuv Act); - contributions towards expenses (Wuv Act and Wubo Act).

These types of financial support are described below.

Monthly benefit (Wuv Act and Wubo Act)A monthly benefit is paid under both the Wuv Act and the Wubo Act. You will have been awarded a monthly benefit under the Wuv Act if your illnesses or disabilities due to persecution led to a permanent reduction in your earning capacity or to reduced functioning compared to that of your contemporaries. You will have been awarded a monthly benefit under the Wubo Act if your disability relating to the war led you to stop working or permanently reduce your working hours, resulting in a decrease in income.

Guarantee benefit (Wubo Act only)The guarantee benefit is a benefit under the Wubo Act for civilian war victims who are not employed, whose disability resulted from violent warfare experiences, and whose family income is lower than the social minimum.

Supplement under Article 19 (Wubo Act only)Every civilian war victim can receive a supplement to improve his or her living circumstances. This is termed the ‘Article 19 supplement’. This supplement does not depend on your other income. You receive the full Article 19 supplement if you are a civilian war victim and are not entitled to a monthly benefit or if you receive a benefit on the basis of the minimum base amount. If, as a civilian war victim, you are entitled to a monthly benefit that is not based on the minimum base amount, you will receive a partial supplement under Article 19.


The Article 19 supplement is not awarded if a monthly benefit has been awarded at a benefit percentage of 12 or 20 per cent. You can find more information about this in the section ‘Long-term stay in a care institution’.

Amount under Article 21b (Wuv Act only)It used to be the case that an amount could be awarded for non-measurable disability costs (NMIK) under Article 21b of the Wuv Act. The NMIK amount was meant for married women who had been persecuted and who were not entitled to a benefit because they had not been the breadwinner. This distinction between men and women ceased to apply as of January 1992. However, any benefit commitments will remain in place until a monthly benefit is awarded. The NMIK amount does not depend on other income.

Contributions towards costs (Wuv Act and Wubo Act)In addition to your benefit, you can also get contributions towards costs in the form of reimbursements and allowances. A reimbursement is a contribution towards costs of provisions which are medically necessary. These costs are reimbursed either in full on the basis of a standard amount. An allowance is a contribution towards the costs of services or facilities that are desirable for social/medical reasons. The amount of an allowance depends on your total income.

Monthly benefit: how it is determined

A monthly Wuv or Wubo benefit guarantees a certain income. You will have been awarded a monthly benefit under the Wuv Act if your illnesses or disabilities due to persecution led to a permanent reduction in your earning capacity or to reduced functioning compared to that of your contemporaries. You will have been awarded a monthly benefit under the Wubo Act if your disability relating to the war led you to stop working or permanently reduce your working hours, resulting in a decrease in income.

The monthly benefit is based on a base amount. The base amount was stated in the award decision.

Depending on your personal circumstances, such as age and civil status, you will be entitled to a certain percentage of the base amount. This is termed the benefit percentage.

The gross benefit (base amount times benefit percentage) is the gross income guaranteed by the benefit. Various types of supplements can be paid over and above the gross benefit.


Your gross income from other sources, such as AOW old age pension, private pensions or assets, is deducted from the gross benefit (including supplements, if any).

Please note that the information in this and the following sections concerns only the monthly benefit, and not the guarantee benefit under the Wubo Act.

Determining the benefit amountIn order to determine the amount of your monthly benefit, we asked you for information on your income. In principle, we will only do so once. When your benefit has been determined, we will not need any more details on your other income.

Indexation of your benefitYour monthly benefit is adjusted by the same indexation figure as the statutory minimum wage. Indexation usually takes place every six months. You will be informed of this in a payment notification.

Reassessment of the benefitOnly in a limited number of situations will your monthly benefit be reassessed. This happens if the following events take place: - you or your partner reaches the AOW pension age; - you get married or start living with a partner; - you become single because your partner has passed away, you and your

spouse have separated or divorced, or you and your partner have stopped living together;

- you move to a care institution; - you or your partner get a new source of income or lose an existing source of

income; - you or your partner discontinue an enterprise; - your child or foster child reaches the age of 21.

If any of the above mentioned events takes place, you must notify us. In that case, we will need to ask you for financial information. We can also reassess your benefit on your request. This is advisable if your income from an existing source stays the same over time or has gone down.

When the rate of your monthly benefit has been reassessed, you will be informed by means of a decision determining the amount of your benefit.


Monthly benefit: the base amount

Your monthly benefit is calculated on the basis of a ‘base amount’. The base amount for your benefit was stated in the award decision.

Base amount for the Wuv ActIn principle, the base amount for the Wuv Act is the income from work that you would have received in The Netherlands when you submitted your application. In determining this income, we take the profession that is financially the most favourable for you: - your last profession; - your last profession before the illnesses or disabilities manifested

themselves; - your last profession before the persecution.

The profession for the determination of the base amount is called the ‘reference profession’. In determining the base amount, use is made of a number of details such as the reference year, your profession(s) and the salary you earned. The reference year is the year in which your illnesses or disabilities led to a permanent decrease in your earning capacity.

In determining the base amount, no consideration is given to opportunities for further education or promotion that you may have missed. If you worked outside The Netherlands, determination of the base amount starts from the income from the most comparable profession or enterprise in The Netherlands.

There is a statutorily determined minimum and maximum for the base amount. If your functioning compared to that of your contemporaries was reduced at a point when you were no longer dependent on income from work, the minimum base amount is awarded.

Base amount for the Wubo ActIn principle, under the Wubo Act, the base amount is the income from work that you would have had in The Netherlands at the time when you submitted your application if your disability had not manifested itself.

The profession used in determining the base amount is called the ‘reference profession’. In determining the base amount, use is made of a number of details, such as the point in time when you stopped working or reduced your working hours, your profession(s) and the salary you earned.

In determining the base amount, no consideration is given to chances of further education or promotion that you may have missed. If you worked outside The Netherlands, determination of the base amount starts from the income from the most comparable profession or enterprise in The Netherlands.

There is a statutorily determined minimum and maximum for the base amount.


Monthly benefit: the benefit rate

Depending on your personal circumstances, such as age and civil status, you are entitled to a certain percentage of the base amount (see Articles 10 and 14 of the Wuv Act and Articles 14, 15 and 18 of the Wubo Act). This is termed the benefit percentage. At the end of this section, you will find a table showing all the benefit percentages. A number of topics will be discussed below in more detail.

Different rates for Wuv Act and Wubo ActBenefit percentages for a victim of persecution under the Wuv Act are 5% higher than benefit percentages for a civilian war victim under the Wubo Act. However, if you receive a benefit for a civilian war victim under the Wubo Act, you always receive a supplement under Article 19 of the Wubo Act as well.

The terms married, living with a partner and singleFor both the Wuv Act and the Wubo Act, the benefit percentage is higher if you have a partner who is dependent on your income. It makes no difference whether you are married or simply live together. However, certain conditions must be met. One such condition is that couples living together must share a home and run a household together on a permanent basis.

A married person who is separated and does not live with his or her spouse is regarded as single.

Your partner’s incomeYour partner is dependent on your income if his or her income is not more than 30% of the maximum base amount (for 2016, this is approximately € 15,815 gross per year).

If your benefit commenced before 1 January 1992 and you were married on 31 December 1991, your benefit will be based on the higher benefit percentage (irrespective of your partner’s income and as long as this situation does not change).

Long-term stay in an institution which offers residence with care on the basis of the Dutch Chronic Care Act (WLZ: Wet op de Langdurige Zorg)A benefit percentage of 12 or 20 per cent applies if you stay for at least six months in an institution which offers residence with care on the basis of the Dutch Chronic Care Act (WLZ) and it is not expected that you will return to your own home within the foreseeable future. For an explanation of these percentages, see the table.

The benefit percentage will not be reduced if your partner continues to live at home, unless you claim AOW old age pension for a single person. You can find more information on this in our Dutch brochure entitled “Wijzigingen bij verhuizing naar een instelling voor zorg met verblijf op grond van de WLZ”.


The percentages of 12 and 20 per cent do not apply if you received a monthly benefit before 1 January 2001 and were also admitted to a care institution before 1 January 2001.

Table of percentages for monthly benefits

Percentage

Wuv Act

Wubo Act

Benefit for victims of persecution (Wuv Act) or civilian war victims (Wubo Act)

85 80 under the AOW pension age If you are married or living with a partner and your partner’s income is not more than 30% of the maximum base amount

80 75 under the AOW pension age If you are a single parent of minor children

75 70 under the AOW pension age If you are single, or married or living with a partner and your partner’s income is more than 30% of the maximum base amount

70 65 the AOW pension age If you are married or living together and your partner’s income is not more than 30% of the maximum base amount

65 60 the AOW pension age If you are a single parent of minor children

60 55 the AOW pension age If you are single, or married or living with a partner and your partner’s income is more than 30% of the maximum base amount


Percentage

Wuv Act

Wubo Act

Benefit for a surviving partner of a victim of persecution (Wuv Act) or civilian war victim (Wubo Act)

75 75 under the AOW pension age * with minor children **

70 70 under the AOW pension age * with no minor children

55 55 the AOW pension age with minor children **

50 50 the AOW pension age with no minor children

Percentage

Wuv Act

Wubo Act

In the event of long-term admission to an institution which offers residence with care on the basis of the Dutch Chronic Care Act (WLZ)

20 20 If a couple is admitted and the partner’s income is not more than 30% of the maximum base amount

12 12 If a single person is admitted or if a couple is admitted and the partner’s income is more than 30% of the maximum base amount

* The gross benefit for a surviving partner under the AOW pension age is subject to

a maximum.

** Minor children are children under 21 who live at home or for whom the recipient

must pay child support.

Monthly benefit: supplements

Various types of supplements can be paid on top of the gross benefit. They include: - supplement to gross benefit under the Wuv Act; - allowance for health insurance contributions; - supplement for people of and over the AOW pension age (also called AOW

supplementary allowance); - child allowance.

Which supplements are awarded to you depends on your specific situation. The various supplements are explained in more detail below.

Supplement to the gross benefit under the Wuv Act (Article 10.3)If 5% of the individually determined base amount for a victim of persecution is lower than 10% of the minimum base amount, a supplement is paid on top of the gross benefit under the Wuv Act. This supplement under Article 10.3 is the difference between 10% of the minimum base amount and 5% of the individually determined base amount. Of the gross amount, 5% of the individually determined base amount as well as the supplement paid under Article 10.3 of the Wuv Act are tax-free.


Supplement to the gross benefit under the Wubo Act (Article 19)A supplement can also be paid on top of the gross benefit of a civilian war victim under the Wubo Act. This supplement is 10% of the minimum base amount if the benefit is based on the minimum base amount, and 5% of the minimum base amount if the benefit is based on the maximum base amount. If the base amount is between the minimum and the maximum, the supplement is calculated proportionately between 5% and 10% of the minimum base amount. The Article 19 supplement is tax-free.

Allowance for health insurance contributionsUnder Article 15 of the Wuv Act and Article 20 of the Wubo Act, an allowance to a benefit is calculated to compensate for health insurance contributions. The contribution is determined each year and is included in the calculation of the benefit. For benefits with a base amount higher than the minimum, the allowance will not always be paid out in full.

Supplement for people of and over the AOW pension age (also called AOW supplementary allowance)If you have reached the AOW pension age, you will receive a supplementary allowance on top of the monthly benefit. This is termed the AOW supplementary allowance (Article 17 of the Wuv Act; Article 23 of the Wubo Act). For married couples or couples living together, the supplement is 60% of the maximum amount in AOW old age pension for a married person. For single persons, the supplement is 20% of the maximum AOW old age pension for a single person. For single parents with a child under 18, the supplement is 20% of the maximum AOW old age pension for a single parent.

The supplement will not be payable in the following situations: - if you are staying inan institution which offers residence with care on the

basis of the Dutch Chronic Care Act (WLZ) on a long-term basis and your benefit has been calculated at a lower percentage (for more information, see the section on ‘Long-term stay in an institution which offers residence with care on the basis of the Dutch Chronic Care Act (WLZ: Wet op de Langdurige Zorg);

- if you are entitled to ‘reduced deduction for AOW pension’.

You can find more information on the supplement for people of and over the AOW pension age (also called AOW supplementary allowance) in our leaflet entitled ‘Changes in your benefit when you reach the AOW pension age’.

Child allowanceIf you receive a monthly benefit and you live outside The Netherlands, a child allowance may be calculated (Article 16 of the Wuv Act, Article 22 of the Wubo Act). This is possible if you live in a country where there is no form of child benefit. The child allowance is awarded under the same conditions as those that apply under the National Child Benefits Act in The Netherlands. The amount of this allowance does not depend on your other income.


Monthly benefit: deduction of other income

Your gross income from other sources is deducted from your gross benefit (including the supplements if applicable). Other income might be AOW old age pension, private pensions or income from assets (Article 19 of the Wuv Act; Article 28 of the Wubo Act). However, such income is not deducted fully. The portion of your other income that is not deducted is termed the exemption. Below, we explain which other income is deducted in full or in part and how this is done.

Income from workIf you are under the AOW pension age and you receive a monthly benefit, part of your income from work will be deducted from your benefit. Income from work is deducted when it is higher than a certain amount. This amount is termed the exemption. Only the income in excess of the exemption is deducted. The exemption is 20% of the base amount of your benefit.

The deduction of your income from work takes into account professional expenses. Professional expenses are costs that you must incur in order to carry out your work. In determining your income from work, we disregard 5% of your employment-related expenses unless you can demonstrate that your employment-related expenses were higher.

If you have reached the AOW pension age, any income from work is not deducted from your monthly benefit.

Income treated as income from workDutch benefits under the Unemployment Benefits Act and the corresponding arrangement for public servants are treated as income from work. Incapacity benefits and early retirement benefits are not treated as income from work.

Income from own enterpriseDepending on the form of your enterprise, If you are under the AOW pension age, the net profits or your salary as the director of a private limited company are regarded as income. In general, we follow the allocation made by the Dutch Tax Authorities.

Income from assetsIncome from assets is deducted from your gross benefit. Your assets are your joint possessions less the debts of you and your partner (if applicable). In principle, assets are determined once, on the commencement date of your benefit.

Income from assets is determined by taking a fixed percentage of your assets. For this purpose, we use the percentage stated in the tax legislation. In 2017 this percentage is 2.87% (previously this was 4%).


A certain amount is exempt in deducting income from assets. This means that some of your income from assets will not be deducted. If your benefit is reassessed, the exemption will also be adjusted.

Income from assets is reassessed in only a few cases. If you get married or start living with a partner, any assets of your partner are added to the assets determined for you as a single person. In the event of divorce or separation, the assets determined earlier are reduced in proportion to the agreed apportionment. If your spouse or the partner with whom you live should pass away, the income from assets determined earlier will not be reviewed because allocation of assets generally does not take place in such a situation.

Business assetsAssets that belong to your own enterprise are determined when a benefit commences, but do not count towards determining the deduction for assets as long as you continue to operate the enterprise. However, if you or your partner terminate the enterprise, please let us know, because your benefit will have to be adjusted at that time. If an amount in business assets has been determined, you will receive a letter from us each year asking you whether you have stopped the enterprise or your business operations.

Decreased assetsIn exceptional situations, we can take account of a decrease in assets. However, this must involve a significant decrease due to causes beyond your control. This does not include ‘normal’ spending of assets or investment risks.

Income from assets is attributed equally to each partnerIf your partner also has a benefit under the Wuv Act or the Wubo Act, income from assets is attributed equally to each of you. In that case, the exemption is halved as well.

AOW old age pensionIf you are married, your AOW pension and that of your spouse or partner is deducted from the gross benefit. This also applies if you live together without being married and are treated as married. For calculation purposes, we work with gross amounts in AOW (including holiday allowance) that are slightly lower than the gross amounts in AOW on which tax is calculated. These lower amounts, termed ‘pre-Oort amounts’, were introduced as of 1 January 1990.


Reduced deduction of AOW pensionIf you are married or treated as married, and if both you and your partner are of or over the AOW pension age, then the following applies. If your partner receives a benefit under the Wuv Act or the Wubo Act and/or a pension to which a deduction already applies of at least 40% of the AOW at the rate for married persons, then your income is subject to the so-called ‘reduced deduction of AOW pension’. This means that half of your joint AOW is deducted from your benefit. In that case, the AOW supplementary allowance is not awarded. You can find more information on the reduced AOW deduction in the letter you receive from us before you reach the AOW pension age.

Other incomeAll your other income is deducted in full from your gross benefit. This concerns all income you receive in the form of pensions, annuities or other types of periodic payments. If you paid the contribution for an annuity during a period in which you received a benefit under the Wuv Act or the Wubo Act, part of the annuity is not deducted in proportion to this period.

What is not considered incomeChild benefit is not deducted from your benefit. The same applies to targeted subsidies and allowances, such as rent allowance and care allowance. Only your partner’s AOW pension and income from assets are deducted from your benefit. Income received by any children living at home with you are not included in the calculation of your benefit.

One-off incomeInheritances received after 1 January 2009 are disregarded when your benefit is reassessed. The same applies to non-recurrent capital distributions from life insurance policies, capital sum insurance or single-premium policies that are made on or around around the date of your retirement. This also applies if your pension is so low that it has been redeemed in a single payment. Non-recurrent payments are payments that were not made earlier and that will not be made again later. Income that you receive once a year, however, counts towards the determination of your benefit.

Conversion of foreign incomeIn principle, your other income is determined only once in determining your benefit. Your income in foreign currency is converted into euros for this purpose. For conversion purposes, we use the exchange rate of the month in which your benefit is determined, unless it is higher than the maximum exchange rate. The maximum exchange rate is based on the average of the exchange rates for the five years prior to the year in which the assessment is made. If details are only available for a more current period, the average (annual) exchange rate for that period applies, unless it is higher than the five-year average prior to the current period.


Guarantee benefit (Wubo Act)

The guarantee benefit is a benefit under the Wubo Act for civilian war victims who no longer work and whose disability resulted from violent war-time experiences and whose family income is less than the social minimum.

The guarantee benefit is based on the minimum base amount. Depending on your personal circumstances, such as age and civil status, you will receive a certain percentage of the base amount. This is termed the benefit percentage. The gross benefit (base amount times benefit percentage) is the gross income guaranteed by the benefit. Various types of supplements can be paid on top of the gross benefit. Your gross income from other sources, such as AOW old age pension, private pensions and/or assets, is deducted from the gross benefit (including any supplements). Base amountLike the monthly benefit, the guarantee benefit is calculated on the basis of a ‘base amount’. For the guarantee benefit, the base amount is always the statutory minimum (article 11 of the Wubo Act).

Benefit percentageDepending on your personal circumstances, such as age and civil status, you are entitled to a certain percentage of the base amount (see Article 24 of the Wubo Act). This is termed the benefit percentage. At the end of this section, you will find a table showing the benefit percentages.

The benefit percentage is higher if you are married or living with a partner. However, certain conditions must be met. One such condition is that couples living together must share a home and run a household together on a permanent basis. A married person who is separated and does not live with his or her spouse is regarded as single.

SupplementsThere are two types of supplement to your gross guarantee benefit (base amount times benefit percentage) to which you may be entitled. They are: - an allowance for health insurance contributions; - child allowance.

- Allowance for health insurance contributionsAn allowance for health insurance contributions is calculated on your income guarantee benefit (Article 20 of the Wubo Act). The contribution is determined each year and is taken into account in calculating the benefit.


- Child allowanceIf you receive an income guarantee benefit and you live outside The Netherlands, a child allowance may be granted (Article 22 of the Wubo Act). This is possible if you live in a country where there is no form of child benefit. The child allowance is awarded under the same conditions as those that apply under the National Child Benefits Act in The Netherlands. This supplement does not depend on your other income.

Deduction of other incomeIn principle, your gross income from other sources, such as AOW old age pension, private pension or income from assets, is deducted in full from your gross income guarantee benefit, including any supplements (Article 29 of the Wubo Act). If you are married or living with a partner, your partner’s gross income is also deducted from your gross guarantee benefit.

Determining the benefit percentageIn order to determine the amount of your guarantee benefit, we asked you for information on your income. In principle, this is done only once. Once the amount of your benefit has been determined, we will not need any more details on your other income.

Indexation of your benefitYour guarantee benefit is adjusted by the same indexation figure as the statutory minimum wage. Indexation normally takes place every six months. You will be informed of this in a payment notification.

Reassessment of the benefitOnly in a limited number of situations will your guarantee benefit be reassessed at a later point in time. This will happens if the following events take place: - you or your partner reach the AOW pension age; - you get married or start living with a partner; - you become single because your partner has passed away, you and your

spouse have divorced or you and your partner have stopped living together; - you or your partner obtain a new source of income or lose an existing

source of income; - you or your partner discontinue an enterprise; - your child or foster child reaches the age of 21.

If any of these events take place, you must notify us. In that case, we will need to ask you for financial information.

You can also ask us to reassess your guarantee benefit. This can be advisable if your income from an existing source stays the same over time or has gone down considerably.


When the amount of your monthly guarantee benefit has been reassessed, you will be informed by means of a decision determining the amount of your benefit.

Table of benefit percentages for the guarantee benefit under the Wubo Act

Percentage Guarantee benefit (Wubo Act)

80 under the AOW pension age If you are married/living with a partner

75 under the AOW pension age If you are a single parent of minor children*

70 under the AOW pension age If you are single

65 the AOW pension age If you are married/living with a partner

55 the AOW pension age If you are a single parent of minor children*

45 the AOW pension age If you are single

* Minor children are children under 21 who live at home or for whom the beneficiary

must pay child support.

Contributions towards costs

In addition to your benefit, you can also get contributions towards costs in the form of reimbursements and allowances. Many contributions towards costs are paid on a monthly basis. The decision determining the amount of the benefit and the payment notification state the total amount payable for the monthly reimbursements or allowances you have been awarded. Provisions for which you must submit a declaration form are not included in the decision determining the amount of the benefit or the payment notification. Payment of these reimbursements or allowances is stated in a payment decision.

ReimbursementA reimbursement is a contribution towards costs of provisions that are medically necessary. In principle, such costs are reimbursed in full.

AllowanceAn allowance is a contribution towards the costs of services or facilities that are desirable for social/medical reasons. The amount of an allowance depends on your total income. Based on your income, a personal contribution (your ‘financial capacity’) is first calculated. If your personal contribution is higher than the amount named in the decision, no payment is made.


Calculation of your personal contribution for an allowanceCalculation of your personal contribution is based on your total income. The following applies: - if your total income is lower than the maximum base amount, 80% of the

minimum base amount is deducted from it. 10% of the remainder is the amount of your personal contribution. Your personal contribution is deducted from the gross allowance that was determined;

- if your income is higher than the maximum base amount, half of the amount in excess of this limit is added to your personal contribution.

Income from assets is not taken into consideration in calculating your personal contribution.

When is your personal contribution reassessed?When you reach the AOW pension age, your personal contribution will be reassessed. To make this calculation, we will ask you for financial information.

You may also ask us to reassess your personal contribution. Your request will be granted if the new calculation shows that your personal contribution differs by more than 30% from the amount previously determined. After your personal contribution has been reassessed, you will be informed by means of a payment notification.

Standard amountsMany reimbursements and allowances are based on standard amounts. A standard amount shows the maximum amount payable for the provision concerned. In many cases, the maximum amount is paid in full. The standard amounts are based on research into the costs of the service or facility concerned. This research is done at regular intervals. If necessary, the standard amounts will be adjusted.

The reimbursement or allowance for some infrequently used provisions is determined on the basis of offers or price quotations that you submit to us. In determining the reimbursement or allowance, we assume that the amount should be sufficient for the least expensive adequate provision.

Tax-freeReimbursements and allowances are not regarded as income under tax legislation and are therefore paid out tax-free. Any reimbursements or allowances paid to you are therefore not shown on your annual statement.

End of reimbursement or allowance upon admission to careMonthly reimbursements and allowances will stop if you are admitted to an institution which offers residence with care on the basis of the Dutch Chronic Care Act (WLZ) and you no longer incur costs for the provisions concerned.


They are terminated by means of a decision which takes effect on the first day of the second month following the month in which you were admitted. For more information on this, please refer to our brochure entitled ‘Contributions towards costs, reimbursements and allowances under the Wuv Act and the Wubo Act’.

End of reimbursement or allowance in the event of deceaseReimbursements and allowances will stop if the beneficiary passes away. If you are single, they will stop in the month after your death. If you are married or living with a partner, they normally also stop in the month after your death. However, under certain conditions, a limited number of reimbursements and allowances can continue to be paid temporarily to the surviving partner. For more information on this, please refer to our brochure entitled ‘Contributions towards costs, reimbursements and allowances under the Wuv Act and the Wubo Act’.

Tax issues Tax and social security contributionsIf you are liable to taxation in The Netherlands, tax and social security contributions are generally withheld from your benefit. This includes the contributions for national insurance schemes such as the AOW. The amount withheld depends, among other things, on the applicable tax credit, and whether you are over or under the AOW pension age.

Deduction at sourceThis applies to amounts paid on the basis of Article 10.3 and Article 21b (NMIK) of the Wuv Act and Article 19 of the Wubo Act. Under this arrangement, the Sociale Verzekeringsbank pays the tax and social security contributions for the amounts paid to you, so you receive the amounts free of tax. Because of this, these payments are not taken into account for other Dutch income-linked schemes, such as rent and care allowance, and they are not shown on your annual statement.

Tax-free amountsBesides the amounts that are subject to deduction at source, reimbursements and allowances are paid out free of tax as well.

Annual statement The total amount you have received in taxable payments in a given year is shown on your annual statement for that year. This refers to payments of the monthly benefit or the guarantee benefit. Because the amounts to which deduction at source applies and any reimbursements or allowances awarded to you are not taxable payments, they will not be shown on your annual statement.


Allowance for income-related health insurance contributions (Zvw)

If you owe an income-related contribution on your benefit under the Health Insurance Act (Zvw), you will receive an allowance for this (Article 17a of the Wuv Act, Article 21 of the Wubo Act). It will be shown on the payment notification as ‘Compensation for health insurance contribution (Zvw)’.

If your benefit is overpaid or underpaid

UnderpaymentsIf the calculation shows that your benefit was underpaid, a back payment will be calculated. This may be the case if, when the benefit amount is determined, your advance turns out to have been too low, or your personal contribution too high. You may also receive an underpayment if your benefit has been reassessed. On the payment notification, underpayments are stated under the heading of Non-recurrent payments (‘Eenmalig’).

OverpaymentsIf the calculation shows that your benefit was overpaid, the overpayment must be settled. If the overpayment was more than € 600, we will make a repayment proposal. You can respond to this or make a proposal of your own within 6 weeks. If you make a proposal of your own, we will consider it, but otherwise we will carry out our own proposal. If the overpayment was less than € 600, we will not make a proposal, but as a rule the amount will be offset within 12 months. You will find the balance of the overpayment on your payment notification.

If the amount cannot be offset, we will ask you to repay it. It is generally possible to reach agreement on repayment in monthly instalments. In that case, we will send you a statement of account every month.

Overpayments of taxable and tax-free amountsIf you received an overpayment of a taxable benefit, in many cases, tax and social security contributions will have been withheld from the payment. The overpayment to be offset or reclaimed is the gross amount, including the tax we paid. If the overpayment can be offset against a current taxable benefit, we will ensure that the tax withheld is in accordance with your lower taxable income.

If an overpayment cannot be offset and you must repay it, this may result in a negative balance on your annual statement. In that case, you will have to ask the Dutch Tax Administration to refund your overpaid tax and national insurance contributions.

If you received an overpayment of a tax-free benefit, then offsetting of the tax-free benefit will not lead to a lower taxable income, since no tax was due on this benefit in the first place.

This brochure contains general information. No rights can be derived from the contents of this brochure.


Glossary of termsterms explanation

allowance contribution towards costs that is dependent on your income

AOW National Old Age Pensions Act (AOW)

Article 19 of the Wubo Act supplement intended to improve living circumstances

Article 21b of the Wuv Act amount for non-measurable disability costs (NMIK) originally intended for a married woman who was a victim of persecution who in the past was not entitled to a benefit if she was not the breadwinner

assets the value expressed in terms of money of your immovable property, valuable possessions, investments and bank balances, less the amount of your debts

base amount amount on which a monthly benefit or guarantee benefit is based

benefit percentage percentage that determines the gross benefit after a base amount is awarded

Burgerservicenummer your general registration number with Dutch government bodies. The number is the same as your ‘SoFinummer’

civilian war victim person who, as a civilian, suffered permanent physical or psychological injury in the war

contribution towards costs this takes the form of a reimbursement or allowance

decision determining the amount of the benefit

letter determining or reassessing and explaining the amount of the benefit

deduction at source arrangement by which the employer or benefit organisation pays the tax and social security contributions due on certain payments

exemption amount disregarded in the calculation, for example, a certain amount in income

financial capacity yardstick for the amount a person can pay in costs from his or her own income

gross benefit base amount x benefit percentage

grossing-up supplement supplement to gross income for beneficiaries under the AOW pension age

guarantee benefit (Wubo Act)

monthly benefit based on the minimum base amount for civilian war victims who are not working, whose disability resulted from violent war-time experiences and whose family income is less than the social minimum

maximum base amount highest base amount that can be awarded

minimum base amount lowest base amount that can be awarded


terms explanation

minor child for the Wuv Act and the Wubo Act, this means a child under the age of 21

monthly benefit monthly benefit based on a base amount

NMIK amount for non-measurable disability costs (see also: Article 21b of the Wuv Act)

offsetting, settlement paying back overpayments by the deduction of regular instalments from your benefit

other income in terms of the Wuv Act and the Wubo Act, this means all income not from AOW, income from work in a profession or from enterprise, and income from assets

payment decision letter informing you of payment of reimbursements or allowances for which you submit a declaration form

payment notification overview stating the total amounts of your monthly benefit and of any provisions (contributions towards costs) paid periodically

personal contribution amount deducted from an allowance after the financial capacity has been determined

reduction amount deducted from the gross benefit

reference profession profession used in determining the base amount

reimbursement payment of the costs of a particular provision (service or facility)

single person person living alone without spouse or partner

standard amount maximum amount payable for a particular provision (service or facility)

status equal to a married person

equal treatment of partners living together and married couples

supplement amount added to the gross benefit

survivor widow or widower of a victim of persecution or civilian war victim; a partner with whom the beneficiary lived together can have the same status

tax and social security contributions

a combined payment of tax and contributions for national insurance (e.g. AOW); the amount depends on your personal tax credit and whether you are over or under the AOW pension age

tax credit reduction to the tax and social security contributions to be paid

taxable amount on which tax and social security contributions are due

tax-free amount on which no tax or social security contributions are due

to reclaim recovering an overpayment


terms explanation

victim of persecution person who was persecuted on the basis of race, religion, world view or sexual orientation

work-related expenses costs a person must incur in order to carry out his or her profession

WLZ Wet op de Langdurige Zorg (Chronic care Act)

Wubo Act Benefit Act for Civilian War Victims 1940-1945 (Wubo Act)

Wuv Act Benefit Act for Victims of Persecution 1940-1945 (Wuv Act)

The Sociale Verzekeringsbank (Leiden Branch Office) is

responsible for the implementation of the Dutch Acts

and schemes for Members of the Resistance and Victims

of War. All your questions can be directed to this office.

Applications from previously unknown applicants are

assessed by the Pension and Benefit Board, which also

determines the policies.

calculating benefits under the wuv act and the wubo act ... · - the tax credit – this may be...

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