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Less payroll tax reduction for your employees

This information is provided by

Netherlands Enterprise Agency, RVO

Effective date: Not yet known

The wage tax credit you deduct from your employees' wages will change. For income over €21,317 the deduction will be lower.

What changes?

Do you employ staff? The wage tax credit you deduct from your employees’ salaries will change. Is their income from work and home ownership higher than €21,317? Then the deduction will decrease by 6.007%. You no longer charge a tax credit if the income is higher than €66,398.

You deduct wage taxes from your employees' gross salary. The salary that remains is the net wage. You pay the amount you withheld to the tax authorities. This way all employees in the Netherlands pay tax and social security contributions on the wages earned.

Does the employee have 2 or more jobs? Then the employee must choose which employer deducts the wage tax credit. Only one employer can use the wage tax credit.

You will give the employee a loonheffingskorting (wage tax credit) form when they start working. In this form, your employees state if they want you to deduct the wage tax credit.

For whom?

  • entrepreneurs employing staff

When?

It is not yet known when this change in law will enter into effect.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Upper and Lower Houses (Eerste en Tweede Kamer) of parliament or proclamation of the Order in Council (Algemene Maatregel van Bestuur, AMvB) or ministerial decree and publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch).

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This information is provided by

Netherlands Enterprise Agency, RVO
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