Extra increase general levy reduction (algemene heffingskorting)
Effective date: 1 January 2021
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What changes?
The general levy reduction (algemene heffingskorting) will go up. This means you will pay less income tax and a lower national insurance premium. A reduction in the levy was already planned for 2021, but an extra reduction has been added.
The amount of the reduction of the levy, depends on your income. Do you have taxable earnings (your income minus deductible items and fiscal allowances) up to € 68.507? Your disposable income will increase.
For whom?
- Entrepreneurs who earn up to € 68.507 from their work and/or house.
When?
The change in law is expected to come into effect on 1 January 2021.