Levy rebate

What is a levy rebate?

A levy rebate is a decrease of the payable amount in the income taxation. With the Declaration Income Taxation you can demonstrate that you meet the requirements for a deduction. In this manner the discount is included in the declaration and the payable amount is decreased with the appropriate Levy rebate. There are many different levy rebates and various factors determine what discounts are applicable. The levy rebates usually change per year. In the rest of the article the different kinds of levy rebates are explained:

The general levy rebate

Applies for everyone obligated to pay taxes, even if the person obligated to pay taxes does not work and/or has a partner with a high income. This amounts to €2.203,- per year. (2014)

Labour rebate

The labour tax credit applies for those obligated to pay taxes that are currently working (wages from employment, profit from enterprise, freelance incomes etc.) the labour tax credit is a stimulus for accepting paid work, and also a stimulus for older people to continue working. The labour tax credit is charged over the labour income. The amount of labour tax credit is dependent of the income. The maximal labour tax credit is €2.220,- and decreases to €163,- for people with a high labour income (starting at €49.770,-).

Continuing labor bonus

The work bonus has been introduced in 2013 and applies as an extra deduction for those obligated to pay taxes that in that calendar year are between 61 and 64 years old. The maximal amount of the work bonus amounts to €1.119 with a minimum wage income. The work bonus is decreased linearly to zero with an income of 175% of the minimum wage.

Income dependent combination rebate

If you work and have children then you can make use of the income dependent combination deduction. The income dependent combination deduction amounts up to €2.155. You are entitled to the income dependent combination deduction if you meet the following requirements:

-You have paid work for which you receive more than €4.814 a year, or you are considered for the (in the case of profit from one or more enterprises). A child that is not older than 12 years on the 31st of December 2013 should be part of your household for at least 6 months. The child should also be registered on your address. With co-parents the child may also be registered on the address of the other co-parent.

-You do not have a fiscal partner or you are the partner who has the lower income. If the income from work is equal for you and your partner, then the income dependent combination deduction applies for the older partner.

Parental leave rebate (until 2014)

In 2009 the parental leave tax credit has become a lot more appealing for parents. The parental leave tax credit applies to those obligated to pay taxes that make use of the legal right for parental leave in a calendar year. It is important that you receive a parental leave statement from your employer. The parental leave tax credit is the number of hours that have been taken as leave multiplied with 50% of the minimum hourly wage and amounts to €4,29 per leave hour in 2014. The amount of the parental leave tax credit is maximally the taxable wages in the previous year minus the taxable wages in the current year.

Single parent rebate (until 2014)

This tax credit applies for those obligated to pay taxes that do not have a partner for more than 6 months in a calendar year and have a household with children that are younger than 18 years old. The child(ren) must be registered on your current address and the cost for living for the child surpass €408,- per quarter, or you receive child benefit. It does not matter for this tax credit whether or not you perform labour. The single parent tax credit amounts to €947,- in 2014.

bIn 2014 the young disabled person tax credit amounts to €708,-. You are entitled to the young disabled person tax credit if you are entitled to a benefit on the basis of the Work and Employment Support for Disabled Young Persons Act young Disabled Persons (Dutch: Wajong). If you are entitled to the benefit, but you do not receive the benefit, because of a different benefit or different income, the right to the young disabled tax credit remains.

Temporary rebate for early retirees

The temporary tax credit for early retirees is 0,33% of the benefit from a pension scheme or scheme for early retirement, with a maximum of €61,-. You are entitled to this tax credit if you have not reached the pension age in 2014, but you have a benefit from a pension scheme or scheme for early retirement and income dependent contribution is paid for the Health Care Insurance Act.

Pensioner rebate

In 2014 the pensioner tax credit amounts to €1042,- if your aggregate income is less than €35.770. You receive the pensioner tax credit if you have reached the pensionable age. If the aggregate income is higher than €35.450,- than the pensioner tax credit amounts to €152,-. The single pensioner tax credit is €429,- in 2014.

rebate for durable investors

This deduction applies to everyone obligated to pay taxes with durable investments. These are exempt from the yield basis. You are entitled to the deduction for durable investments if you invest money in a fund that has been acknowledged as a durable fund by the Tax Authorities or is considered a social ethical fund. This deduction amounts to a maximum of 0.7% of the exemption in Box 3.

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