Tax on a second part time job in the Netherlands
Article ID: 234 | Last Updated: Mon, Dec 9, 2013 at 12:56 PM
I have two part time jobs in the Netherlands. Both jobs pay 9 euros an hour. One receives a tax discount and the other one doesn‘t. What percentage of tax will I be paying for both jobs?
Tax credits reduce the tax which has to be paid on income earned in the Netherlands. If you receive an income from an employer some of the tax credits will already be used in the payroll administration. This concerns the general tax credit and the employment tax credit. To prevent that more than the maximum tax credit is used only one employer should include the tax credits in their calculations, normally the employer from which you receive the highest salary. But you will have to inform your employers which one can calculate the tax credits.
In your case this is already happening. Only one employer calculates the tax credits, which is right. If it turns out that you are entitled to a higher tax credit than calculated by your employer you can claim the difference in the annual income tax return.
If you receive an income from several employers and organizations, the total income will be the basis for the tax calculations. It may however happen that if you have more employers at the same time, that both employers withhold wage tax as if they are your only employer and therefore both withhold wage tax starting in the lowest tax bracket. Individually the withholdings would be right, but in total the withholdings could then be too low. Because what an employer basically does is multiply the monthly salary by 13 (including holiday allowance) to determine the annual salary and the related tax bracket, independent from salary you receive from another employer. So if not enough wage tax is withheld your employers should be informed about the salary you receive from other employers. The more income you receive from different employers or organizations the more difficult this will be.
The tax brackets can be found on www.expatax.nl/tax-rates. These rates are applicable on your total income. Check in which bracket your total income falls and compare this with the tax rate which is mentioned on your payslip (sometimes stated under "Bijzonder tarief".