WILLEMSTAD – As of this month, the tax authorities will no longer make deductions from the SVB’s AOV pension benefits. The recipient still withholds part of the AOV pension from SVB every month to repay tax debts.
From now on, all retirees will receive full payment of the AOV pension to which they are entitled. But this does not mean that all retirees are now exempt from paying taxes such as property tax.
The exemption only applies if the AOV pension is the only income that the pensioner receives. According to the Ministry of Finance, there is currently no financial scope for the elderly to pay off tax debts.
But if a retiree has other forms of income in addition to his AOV pension, such as a supplementary pension or rental income, the tax debt is still expected to be repaid based on ability to pay.
In that case, the Receiver determines the repayment capacity based on the available income data. If a retiree has a supplementary pension, for example with APC, the Recipient can choose to have a periodic deduction taken from this pension. But under no circumstances will more deductions be made from the AOV pension.
Although everyone must contribute to tax and premium revenues according to their ability to pay, the collection of tax debts from pensioners with very limited repayment capacity should not be the tax authorities’ priority, the ministry said.
When collecting from private individuals, priority is given to the collection of tax debts with a higher repayment capacity. The ministry is aware that it is difficult for many citizens to make ends meet and aims to accommodate this group precisely with these policy adjustments, including the discontinuation of deductions from AOV pensions. The group that, according to the Ministry of Finance, desperately needs every guilder.