What is loonheffingskorting/tax discount and does it apply to me?

Date published 21 October 2022
Date modified 25 July 2023

When you are going to work for an employer in the Netherlands they will ask you if you want to apply ‘loonheffingskorting’. For Dutch people it is obvious but for international students it is not. In this blog we will explain what loonheffingskorting is and when you can apply this discount.

​What is 'loonheffingskorting'?

Loonheffingskorting is a discount on taxes. The employer where you work for pays taxes for you. He will deduct this tax from your salary. In the Netherlands we can request a discount on this tax. This is called ‘loonheffingskorting’. You can only request this discount for one employer. So it really is as simple as a discount on the amount of taxes you need to pay.

​Rules of requirements

Every person that is employed by an employer has a right to ‘loonheffingskorting’. There are however some rules or requirements that you have to meet to apply for ‘loonheffingskorting’. You can only apply ‘loonheffingskorting’ at one of your employers. If you have two or more jobs at different employers you are only allowed to request ‘loonheffingskorting’ at one employer. If you work as a freelancer you cannot apply for ‘loonheffingskorting’ either. As a freelancer you are self-employed and you will be under a completely different tax system.

​Consequences of getting too little or too much 'loonheffingskorting'

In the Netherlands we have to fill in our tax return at the beginning of a new year. The Belastingdienst will check if you have paid enough or too much tax. For example when you paid too much ‘loonheffing’ in 2019, so you didn’t get enough ‘loonheffingskorting’, the Belastingdienst will pay you back in 2020. If you haven’t paid enough tax, you will need to pay it afterwards. Some people don’t apply for ‘loonheffingskorting’ during the year. They will pay a lot of taxes during the year but when they fill in their tax return they get a nice amount of money at once. Other people prefer to get the ‘loonheffingkorting’ and get more money every month. With your tax return you will not get a big amount of money. This is your own choice.

​How does 'loonheffingskorting' work when working for a job agency?

When you work for a job agency like Recruit a Student, it’s possible that you work for different companies. However, because you are always working at the agency, you only have one actual employer. This means you don't have any issues with your ‘loonheffingskorting’ being applied to multiple employers and you are still able to do varied work. Are you interested in working at Recruit a StudentSign up now and you will be able to directly apply to open vacancies.

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