Payroll tax credit

Payroll tax credit reduces the amount of tax on your wages or benefit. This means you have more money left over.  

Right to payroll tax credit 

You have a right to payroll tax credit if you: 

• are employed; 
• receive a benefit; 
• or have worked in the Netherlands temporarily. 

How to claim 

You can claim payroll tax credit through: 

• your employer (if you work), 
• or your benefit agency (such as UWV). 

To claim, you need to fill in a form. You might be given this form automatically, for example when you start working. If you have not been given this form, you can download it from the Belastingdienst website. 

Important! This tax credit can be applied by only one employer or benefit agency at any time. 

Should you claim it or not? 

• Claim this tax credit if you have only one job or receive only one benefit. 
• Do not claim this tax credit if you have a second job or receive a second benefit. You might not pay enough tax, and in that case you will have to pay it back later. 

After you have submitted your claim 

Your employer or benefits agency will make sure you get payroll tax credit. You do not need to do anything else. You will see the tax credit on your payslip or when you get your benefit. Belastingdienst applies this tax credit.