Your employer will deduct payroll tax and national insurance contributions from your salary as a single amount. The amount of payroll tax and national insurance contributions to be withheld by the employer is based on a graded system with four progressive tax brackets. The higher your income, the higher your tax bracket. You will be charged payroll tax and national insurance contributions on your taxable income from work in the first two brackets. Income in the third and fourth brackets is only subject to payroll tax.

Payroll tax is calculated on the basis of a full year’s work. If you do not work a full year, you may request a tax refund from the Belastingdienst via your tax return. To complete your tax return you will need your annual income statement. This contains your total gross pay and all deductions for the year in question. Your employer will send you a copy of the annual income statement at the beginning of each new year.

JobService withholds wage tax and pays this tax to the Tax and Customs Administration. You may find in certain situations that your total annual income is taxed too low. More information you can find here.

The amount of payroll tax/national insurance contributions you need to pay may be reduced by one or more tax credits.

Tax credits for non-residents of the Netherlands changed on 1 January 2019. With effect from that date, the tax credits for non-residents can no longer be applied by the employer. If you have a foreign address and wish to demonstrate that the Netherlands is indeed your country of residence, please fill in the fiscal address form and send it to bureau@uvajobservice.nl. More information can be found here.

You can find more information about deductions, tax rates and income brackets on the website of the Belastingdienst.