WILLEMSTAD — Parents of students studying abroad will be allowed to enter an amount of maximum 15,000 guilders as deductible expenses of their income tax return in the future. This is the core of an initiative proposal of the States, which will be handled next week. The proposal, which is supported by all parties in the States, departs from an adjustment of the land taxes income tax.
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Currently, only an amount of 10,000 guilders is deductible per student studying abroad. The deduction is also considerably limitative as only tuition and fees, obligatory study materials and one journey per year could be written off.
The proposal that will be handled next week in the Central Committee of the States departs from the fact that the maximum deductible amount will be increased with 50 percent. This subsequently means that in the future parents will be able to enter 15,000 guilders as deductible expenses on an annual basis per student studying abroad. The purchase of a computer along with a printer, keyboard, monitor, as well as the software can be entered as deductible expenses in the future. This has been fixed at 750 guilders per year over a maximum period of three years.
The Explanatory Memorandum, which is attached to the enactment, states amongst others that there was a question of a substantial increase of the euro during the past years. According to the petitioners, this implies that the child allowance and the limited deduction as exceptional expenses are no longer adequate. "It is practically inevitable that all parents, also parents of students with a study fund, are forced to periodically transfer money to their children to help them survive. The expenses for fellow country students in other countries have also increased."
According to the petitioners, the government has the task to ensure that country students could undergo further studies to serve their land later on. "In this respect, the adjustment of the deductible study expenses could be used as an instrument of the government to exercise social politics. Therefore, petitioners consider it justified that the maximum deductible amount is increased as exceptional expenses."
Repentance regulation
The proposal also mentions the introduction of a so-called repentance regulation. This regulation is meant to give the taxpayers the chance to still fill in their income tax return correctly and to submit information on income that had not been entered previously. In this, it concerns withholding information on capital and revenues from national as well international sources. This information should be submitted before the Tax Department or the Prosecution Council becomes aware of such. By making use of this regulation, the taxpayer will prevent that he or she will be confronted with serious sanctions.
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