General tax relief (algemene heffingskorting)
15.03.2024Algemene heffingskorting is precisely a discount: it is deducted from the already calculated income tax (as opposed to tax deductions, which reduce the tax base, which does not have such a strong impact on the final amount of taxes).
The general tax credit reduces income taxes and social security contributions. Every taxpayer has the right to algemene heffingskorting. The amount of the discount depends on your age, your income level and whether you have lived in the Netherlands for a whole year or not.
For employees, taxes and contributions to funds are deducted by the employer, since he is the tax agent of the government. The money collected is transferred to the budget and relevant funds.
Important! Employers often make mistakes or fail to consider the impact of a combination of entitlements on different benefits. As a result, the employee is deducted from his salary more than he should be. Overpaid money can be returned! To do this, you must file a tax return, even if you did not receive a letter requiring you to do so.
Dutch tax legislation changes every year. The size of algemene heffingskorting for the last three years can be viewed on the website of the Dutch tax authorities:
It is not easy to take into account all the deductions and discounts you are entitled to; to do this, you need to professionally deal with tax issues. Don't want to overpay and want to get maximum tax refunds? Order filing a tax return with our company!
