Knowledge Base


Welcome to the Expatax Knowledge Base containing hundreds of answers to questions we received about topics concerning tax, payroll, accounting, legal, business etc. related to the Netherlands. Search in our Knowledge Base or browse the different categories. Expatax is a Dutch tax and accounting firm specialized in assisting international workers, freelancers and companies. Don't hesitate to contact us if you need assistance or check our website.


Taxation of 13th month, holiday allowance and pension fund

Question:

I would like to know if a 13th month salary is taxable? And are a holiday allowance and pension fund also taxable?

Answer:

A 13th month salary and holiday allowance are indeed taxed on top of the regular salary against the applicable tax rates. If you have the 30% ruling, it is also applicable on the 13th month salary and the holiday allowance. 

A payment of your employer into the company pension fund for you is tax free. In return the future payment of pension will be taxable. If you live outside the Netherlands when you retire the applicable tax treaty will determine in which country tax needs to be paid (in general the country where you live). 


Attached Files
There are no attachments for this article.
Comments (6)
Comment by Jakub Bogdan on Wed, Jul 2nd, 2014 at 8:57 PM
Hi,what about pension contributions I make to the company
Comment by Arjan Enneman on Thu, Oct 15th, 2015 at 10:41 AM
Premiums you pay into the company pension are deductible. Your employer will deduct the premiums you paid in the monthly pay slip.
Comment by John on Fri, Jan 13th, 2017 at 9:07 AM
Quick question, my previous company distributed the 13th month pay in the salary slip of each month, I left the company after a year and 9 months, will I receive the remaining 3 months amount left on my annual contract or I am not entitled to receive the full year 13th month compensation because I worked for 9 months out of 12 in the year 2016?
Comment by Arjan Enneman on Fri, Jan 20th, 2017 at 11:21 PM
In theory a 13th month is a real 13 month, so the same as a month salary even if you didn‘t work the whole year. However, check your employment contract or an applicable central labour agreement because it may well be that it states that the 13th month will be reduced pro rata if you didn‘t work for the company the entire year.
Comment by Dade on Wed, Apr 19th, 2017 at 12:47 PM
Hi, Is there any FISCAL difference between having the 8% holiday allowance in May or having it equally split in the 12 months? i.e., will we pay more/less tax on the overall gross in case we decide to have the 8% allowance included and spread over the 12 months? Thank you
Comment by Arjan Enneman on Tue, Jun 20th, 2017 at 1:52 PM
Over the year taxation should be the same.
Name
Email
Security Code Security Code
Related Articles RSS Feed
Can I apply for the 30% ruling if I have a foreign employer?
Viewed 4340 times since Wed, Mar 21, 2012
What are the public holidays in the Netherlands in 2013?
Viewed 15600 times since Wed, Jan 9, 2013
How is income taxed in the Netherlands? Can you explain the box system?
Viewed 15824 times since Fri, Nov 4, 2011
What is a VAR?
Viewed 5801 times since Mon, Nov 7, 2011
What are the tax rates in the Netherlands?
Viewed 14610 times since Fri, Nov 4, 2011
Tax on income from foreign (Sri Lanka) project
Viewed 16420 times since Thu, Jan 10, 2013
How is a second home in the Netherlands taxed? It is owned by a non-resident.
Viewed 28877 times since Mon, Nov 28, 2011
I receive alimony for my child. Is it tax free? #netherlands
Viewed 5955 times since Sun, Apr 1, 2012
What is the tax year in the Netherlands?
Viewed 6735 times since Sun, Nov 27, 2011
What is the average gross dutch income in 2013?
Viewed 14516 times since Thu, Jul 18, 2013