Ex officio healthcare insurance refund (treaty beneficiaries)

Dutch Tax and Customs Administration

This page contains information about the algorithm 'Ex officio refund of Healthcare Insurance Act (treaty beneficiaries)'. This algorithm is designed to retrieve tax payroll data for calculating the refund of the wrongly deducted income-related Healthcare Insurance Act contribution to treaty beneficiaries.

Last change on 30th of October 2025, at 15:44 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: Field not filled in.
• Status: In use

General information

Theme

Public finance

Begin date

Field not filled in.

Contact information

[e-mail]

Link to publication website

https://over-ons.belastingdienst.nl/onderwerpen/omgaan-met-gegevens/algoritmeregister/

Link to source registration

https://over-ons.belastingdienst.nl/onderwerpen/omgaan-met-gegevens/algoritmeregister/ambtshalve-teruggave-zorgverzekeringswet-verdragsgerechtigden/

Responsible use

Goal and impact

The Tax Authority checks withholding agents for correct and complete declaration and payment of payroll taxes. Payroll taxes consist of wage tax, national insurance contributions, employee insurance contributions and the income-related Healthcare Insurance Act contribution. Withholding agents (such as an employer, pension fund or benefits agency) withhold wage tax and national insurance contributions from their employee's wages and, in some cases, the income-related Healthcare Insurance Act contribution. They remit this to the Tax Office. The employee insurance contributions and usually the income-related Healthcare Insurance Act contribution are not deducted from the employee's wage, but are paid by the employer to the Tax Administration.

Persons with only a statutory Dutch pension or benefit and who live in a treaty state (EU/EEA/Switzerland or a country with which the Netherlands has a social security treaty) may no longer have health insurance in the Netherlands. Under international rules, these persons can receive medical care in their country of residence paid for by the Netherlands. These persons pay a treaty contribution to the Netherlands for this. This treaty contribution is payable to the CAK (Central Administration Office) and not to the tax authorities. Sometimes, the withholding agent wrongly deducts the income-related Healthcare Insurance Act contribution from the treaty beneficiary's benefit.

The purpose of the algorithm is to retrieve the tax wage data of the treaty beneficiaries. This data is used to calculate their refund of the wrongly deducted Health Insurance Act contribution.

Considerations

The Automatic Refund of Health Insurance Act (treaty beneficiaries) algorithm is important for a correct refund of wrongly deducted health insurance contributions. We want to do this carefully. The algorithm can support a Tax and Customs Administration employee in this. As a result, the assessment is more careful, efficient and uniform.

By using an algorithm, these refunds can be processed faster. As a result, citizens receive their refunds sooner.

Human intervention

Human intervention in the Tax Administration context implies that a competent and knowledgeable employee plays a substantial role in decision-making.Human intervention is involved in the operation of the algorithm, but decisions are also made by the algorithm. The algorithm detects, selects and makes decisions. In situations where the algorithm cannot make the decision (such as more complex situations), there is human intervention by an employee.

Risk management

The General Administrative Law Act (Awb) requires the government's actions to be transparent and lawful. The Tax Administration observes the general principles of good governance when applying and developing algorithms.

The algorithm uses data collected under various tax laws. As required by the AVG, no more data is used than necessary.

The selection rules are reviewed periodically and adjusted if necessary to remain compliant with laws and regulations.

Legal basis

1. General State Tax Act:
2. General Administrative Law Act:
3. General Data Protection Regulation:
4. Income Tax Act 2021:
5. General provisions Citizen Service Number Act:
6. Archives Act 1995:
7. Baseline Information Security Government
8. General Data Protection Regulation Implementation Act
9. Health Insurance Act

Links to legal bases

• General State Tax Act:: https://wetten.overheid.nl/BWBR0002320/
• General Administrative Law Act:: https://wetten.overheid.nl/BWBR0005537/
• General Data Protection Regulation:: https://eur-lex.europa.eu/legal-content/NL/TXT/HTML/?uri=CELEX:32016R0679
• Income Tax Act 2021:: https://wetten.overheid.nl/BWBR0011353/
• General provisions Citizen Service Number Act:: https://wetten.overheid.nl/BWBR0022428/
• Archives Act 1995:: https://wetten.overheid.nl/BWBR0007376/
• Government information security baseline: https://wetten.overheid.nl/BWBR0043146/
• General Data Protection Regulation Implementation Act: https://wetten.overheid.nl/BWBR0040940/
• Health Insurance Act: https://wetten.overheid.nl/BWBR0018450/

Elaboration on impact assessments

• Privacy and AVG

The use of data is tested against the General Data Protection Regulation (AVG). Reviewing personal data reveals any privacy risks and allows appropriate measures to be taken.

The AVG prescribes that no more data should be used than necessary. This is called data minimisation. The Tax Administration regularly examines whether the data used are still necessary and may therefore be used.

• Use of special personal data

The algorithm does not use special personal data.

• Equality and non-discrimination

The algorithm is assessed in line with applicable non-discrimination principles for direct and indirect discrimination. Processing as little personal data as possible reduces the risk of direct discrimination. Employees involved in developing and managing the algorithms receive training on data protection and bias.

Operations

Data

1. Identifying data (including BSN)
2. Payroll tax return data
3. ZVW data

Links to data sources

• Identifying data (including BSN): Basisregistratie Personen (BRP)
• Payroll tax return details: Belastingdienst
• ZVW data: Belastingdienst

Technical design

The algorithm consists of selection rules drawn up by content experts based on laws, regulations and expertise.

A charging decision follows from the algorithm.

The algorithm is not self-learning. This means that the algorithm does not develop itself during its use.

External provider

The algorithm was developed by staff at the Inland Revenue and is also maintained internally.