Tax credits: payroll tax reduction

The payroll tax reduction is a reduction of the wage tax and/or national insurance contributions. The components of this tax credit depend on the form of wages you pay and the employee's age. You may apply the payroll tax reduction solely when the employee has submitted a written request for you to do so. For this request the employee can use the 'Model Statement of data for payroll taxes'. See also 'Obtain the data required for the payroll taxes'.

The payroll reduction is taken into account in the wage tax tables. You can check the tables for 2023, 2022, 2021, 2020, 2019 and 2018 on the webpage belastingdienst.nl/tabellen (only available in Dutch).