If you are born in 1953 and if your income from employment will be between €17,327 and €33,694 in 2017, the information below is important for you.
The Dutch Tax and Customs Administration (Belastingdienst) defines income from employment as:
- wage or any other type of income resulting from you being employed (benefits paid under the Sickness Benefits Act, for example, also count as income from employment);
- profits from business activities or income from freelance work;
- income from options on shares.
The work bonus for all the self-employed professionals and staff members is an income-dependent tax credit which was introduced in 2013 to make work more attractive to older employees. The work bonus 2013 has been added when filing the tax return for 2013 (aangifte Inkomstenbelasting). Since 1 January 2014, the employer applies the work bonus via the wage levy that is deducted from the salary. If you have told the salary administration to apply the income tax and social insurance contributions credit when deducting the wage levy, the UT automatically grants the work bonus when calculating the wage levy to be deducted.
The maximum work bonus in 2017 amounts to €1,119.
Income from employment 2017
Work bonus 2017
Up to €17,327
Between €17,327 and €19,252
58,1% of the income minus €17,327
Between €19,252 and €23,104
From €23,104 up to €33,694
€1,119 minus 10.567% x
The following are a few examples to clarify how the work bonus is calculated:
Let's say you are born in 1953 and you have an income from employment of €15,000. This means your work bonus equals 0.
Now, let's say you are born in 1953 and your income from employment is €18,000. In that case, your work bonus equals 58.1% of €673.00 (€18,000 minus €17,327), which is €391.01.
Now, let's say you are born in 1953 and your income from employment is €20,000.
That would mean your work bonus equals €1,119.
If your income from employment is below or exceeds a certain income group, this may lead to an additional tax assessment.
This may be caused by, for example:
- a promotion, a change in working hours, a bonus, payment of the hours of leave via the Optional Model;
- a salary cut because of the use of the source of money from the Optional model for employment conditions or because of long-term illness.
Even if you have several employers in 2017 and meet the other conditions, granting the work bonus may lead to an additional tax assessment or a lower refund when you file the tax return for 2017.