heffingskortingen

Heffingskortingen are a group of tax credits in the Dutch tax system that reduce the amount of income tax and national insurance contributions that a taxpayer owes. They are designed to lower the overall tax burden and can affect both wage withholding and the annual tax settlement.

The most notable heffingskortingen include the algemene heffingskorting (general tax credit), arbeidskorting (working tax credit), inkomensafhankelijke combinatiekorting (income-dependent combination credit for working parents with young children), and ouderenkorting (elderly tax credit). Each credit has its own conditions and calculation rules. The general and other credits are applied in the tax calculation, and their amounts depend on personal circumstances such as age, income from work, and family situation.

Application and administration are handled by the Belastingdienst (Dutch Tax Authority). Some heffingskortingen are automatically calculated and applied based on payroll data and annual income, while others may require filing the annual tax return to request the credit. In general, these credits reduce the tax due; if the credits exceed the calculated tax, it can lead to a tax refund after the settlement, depending on the specific credit and system rules.

Overall, heffingskortingen are a central element of the Dutch tax structure, aimed at easing the tax burden for workers, families, and older taxpayers. Understanding which credits apply can affect take-home pay and post-filed tax outcomes.