![\"\"](\"https:\/\/vwg.nl\/wp-content\/uploads\/20180312_Heffingskortingen-1024x384.jpg\")
<\/p>\n<\/p>\n
Discount at the Tax Office? Yes! No actions along the lines of \u201cFrom\/for<\/em>\u201d or \u201c2 for the price of 1<\/em>\u201c. However, amounts you may deduct from your income tax total. We have quite a range of tax credits in the Netherlands. We cannot possibly cover them all in detail in this article.<\/p>\n The most important, of course, is the general tax credit<\/strong>. Every domestic taxpayer is entitled to this. For foreign taxpayers, see our article Tax credit foreign taxpayer<\/a>.<\/p>\n A simple calculation shows how the tax credits fit into the calculation of income tax due. For the calculation of tax on boxed income, please refer to our article on The tariff<\/a>.<\/p>\n But the Netherlands would not be the Netherlands if we did not make it all even more difficult. This is because the general tax credit and the employment tax credit are income-dependent. The higher your income from work and home (box 1), the lower the rebate.<\/p>\n You are entitled to the full general tax credit (of \u20ac2,254; for AOW recipients, \u20ac1,150) if your income in box 1 is \u20ac19,982 or less. If your income is higher than that amount, your reduction decreases by 4.787% (for AOW recipients: 2.441%) of every euro above \u20ac 19,982. If your income is above \u20ac 67,067, your general tax credit amounts to: nil.<\/p>\n A numerical example:<\/p>\n Everyone who receives income from present employment is entitled to the labour tax credit. Present labour means that you actually performed labour during the period.<\/p>\n The calculation of the employment tax credit is even more complex than that of the general tax credit. Up to an income from present employment of \u20ac32,444, the employment tax credit is steadily increasing (in 2017, this discount can reach \u20ac3,223; for AOW recipients; \u20ac1,645). And at higher incomes, the labour discount is then reduced again to zero.<\/p>\n NOTE: we are talking about different income terms. For the general discount, it is about income in box 1. While for the labour discount, it is the income from present employment that matters. For the elderly tax credit, you have to look at the aggregate income (see below). When one of the two partners does not have sufficient income to securitise his or her general tax credit, that credit is paid. The condition is that the partner's income is such that the rebate could have been offset against the tax due on it. In the classic family situation, it is often the woman who has no (or little) income. That is why this scheme is also referred to as the \u201cright-of-way subsidy\u201d.<\/p>\n The payment of the general tax credit to the least-earning tax partner is being phased out. In 2017, a maximum of 40% of the rebate will still be paid out (40% * \u20ac2,254 = \u20ac901). For those with children, there is still the income-dependent combination discount<\/strong> (the other tax credits linked to having children have since been abolished again). To qualify for the rebate (maximum \u20ac2,778), the parent must:<\/p>\n For tax partners, the partner with the lowest income gets the discount. PLEASE NOTE: that partner must then work for pay himself.<\/p>\n Elderly refers to those who are entitled to AOW on 31 December of the tax year. For them, there are two specific rebates:<\/p>\n The elderly tax credit is income-dependent. Up to a combined income of \u20ac36,057, the discount amounts to \u20ac1,292. If the aggregate income is higher, the discount amounts to \u20ac71.<\/p>\n The single elderly person discount is a fixed amount (\u20ac438). This discount is for the elderly person entitled to the AOW for single persons.<\/p>\n When deducting payroll taxes, not all tax credits are taken into account. The wage tax credit includes only the:<\/p>\n You must tell your employer if you want the payroll tax credit to be taken into account.<\/p>\n The other discounts, if applicable, must be claimed in your income tax return.<\/p>\n REMEMBER: if you have multiple jobs and you have the wage tax credit taken into account in all of them, your income tax return may result in an (unexpectedly) very large additional amount to be paid.<\/p>\n Payment discounts are given by the Inland Revenue on provisional income and corporate tax assessments:<\/p>\n Suppose you receive a provisional income tax assessment 2018 from the Inland Revenue in December 2017. Date of assessment is then 1 January 2018. The income tax due is \u20ac2,000, payable no later than 15 February 2018.<\/p>\n The payment discount is calculated based on the recovery interest rate. That rate is currently: 4%. You will then pay by 15 February 2018: \u20ac2,000 -\/- \u20ac35 = \u20ac1,965. Korting bij de Belastingdienst? Jazeker! Geen acties in de trant van “Van\/Voor” of “2 voor de prijs van 1“. Wel bedragen die je mag aftrekken van het totaal van je inkomstenbelasting. Ook de betalingskorting is een echte korting. Heffingskortingen We kennen in Nederland een flink scala aan heffingskortingen. We kunnen ze in dit artikel onmogelijk […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-616","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=616"}],"version-history":[{"count":1,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/616\/revisions"}],"predecessor-version":[{"id":2629,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/616\/revisions\/2629"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThe payment discount is also a real discount.<\/p>\nTax credits<\/h4>\n
\n\n
\n Tax on box 1<\/td>\n \u20ac<\/td>\n 8.250<\/td>\n<\/tr>\n \n Tax on box 2<\/td>\n \u20ac<\/td>\n 10.000<\/td>\n<\/tr>\n \n Tax on box 3<\/td>\n \u20ac<\/td>\n 650<\/span><\/td>\n<\/tr>\n \n Total tax<\/td>\n \u20ac<\/td>\n 18.900<\/td>\n<\/tr>\n \n Less: tax credits<\/td>\n \u20ac<\/td>\n 2.254<\/span><\/td>\n<\/tr>\n \n On balance tax<\/td>\n \u20ac<\/td>\n 16.646<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Income-related tax credits<\/h4>\n
\n\n
\n Income<\/td>\n \u20ac<\/td>\n 42.500<\/td>\n<\/tr>\n \n Maximum discount<\/td>\n \u20ac<\/td>\n 19.982<\/span><\/td>\n<\/tr>\n \n Overrun<\/td>\n \u20ac<\/td>\n 22.518<\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n Maximum discount<\/td>\n \u20ac<\/td>\n 2.254<\/td>\n<\/tr>\n \n Reduction discount (4.787%)<\/td>\n \u20ac<\/td>\n 1.078<\/span><\/td>\n<\/tr>\n \n Remaining discount<\/td>\n \u20ac<\/td>\n 1.176<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Labour discount<\/h4>\n
\nThey can't make it any more fun at the tax office!<\/p>\nPayment to lowest earner<\/h4>\n
\nFor taxpayers, born before 1 January 1963, this phase-out does not apply.<\/p>\nParents<\/h4>\n
\n
Elderly<\/h4>\n
\n
Payroll tax credit<\/h4>\n
\n
Payment discount<\/h4>\n
\n
\nThe annualised interest rate is: 4% * \u20ac2,000 = \u20ac80. Calculated using the average interest rate, being \u20ac80 \/ 2 = \u20ac40. The payment period comprises 313 days (from 16 February 2017 to 31 December 2017), so the payment discount comes out to (313\/360) * \u20ac40 = \u20ac35.<\/p>\n
\nWith the final income tax due, you offset \u20ac2,000 in your IB return. Your actual benefit is then \u20ac35.
\nThat is, at current interest rates, considerably more than the interest you receive if you leave the money in your (savings) account to pay as late as possible.
\nYou should then be able to spare the full amount of the provisional assessment immediately.<\/p>","protected":false},"excerpt":{"rendered":"