Due to a loophole in the law, European labor migrants with young children are eligible for a tax credit that Dutch families in the same situation cannot get.
A spokesman for outgoing State Secretary of Finance Hans Vijlbrief (photo) confirms this Monday after a message from
The income-related combination tax credit (IACK) is intended for parents with young children who both work.
Parents of whom one works and the other does not qualify, but they can still get the discount if the whole family is registered in, for example, Poland.
In that case, the non-working partner is not regarded as a tax partner.
Vijlbrief speaks of an "unintended effect" that is "not in line with the spirit of the law".
The Tax and Customs Administration has warned the ministry twice about this, in 2015 and 2018. Vijlbrief is now going to amend the law "with priority" and hopes to send a proposal to this effect to the Lower House before the summer.
According to a spokesperson for the Secretary of State, between fourteen thousand and nineteen thousand labor migrants have received the IACK since it was introduced in 2015. It is still unclear in how many cases that was actually not intended.