In the Netherlands you pay tax on your income. About wages from your employer, but also about benefits from the UWV. This is often done through payroll tax: a withholding tax on income tax that your employer or the UWV withholds from your income and pays directly to the Tax and Customs Administration. This deduction often goes well, but it sometimes goes wrong if you have multiple incomes. What exactly is it and what can you do about it? Our experts are happy to explain it to you.
Payroll taxes
Employers and the UWV withhold part of your wages or benefits and pay this to the Tax and Customs Administration. This is a payroll tax. If they did not do this, you would pay all your taxes in one go every year via an additional assessment. For the same reason, it is important that they deduct the correct portion of your income – even if you have multiple incomes. The UWV takes this into account if you receive multiple benefits: it deducts payroll tax as if you only receive one benefit. This way you can be sure that you don't have to pay a large amount all at once.
Tax discount
Everyone in the Netherlands is entitled to a tax credit – also known as payroll tax credit. If you work as an employee, your employer already takes into account the general tax credit and the employed person's tax credit. As a result, you pay less payroll tax and you are left with more net salary. You may only apply each payroll tax credit once. Do you have it applied to multiple incomes, such as different wages or your wages and benefits? Then you will have to deal with a (considerable) additional assessment. This also applies to pensioners who have the payroll tax credit applied to an AOW benefit and one (or more) pension benefit(s). Do you not know to which income the payroll tax credit can best be applied in your situation? Feel free to contact us.”.
Multiple sources of income
Does your income consist of wages and benefits? Then you can ask the UWV to pay your benefit gross to your employer. He is then obliged to withhold and pay payroll tax on the wages and your benefit. The advantage for you: your various payroll taxes are arranged by the same authority, which means that things go wrong less quickly. Moreover, you cannot easily make double use of payroll tax credits.
More information
Do you have any questions about this article or do you want to present your situation to one of our specialists? Feel free to contact us. Our Service Center is available every working day from 8.30:17.00 am to XNUMX:XNUMX pm via sc@unie.nl en (0345) 851 963.
