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.

What is the employment tax credit (arbeidskorting)?

Employment tax credit (or employed person's tax credit)
A taxable person is entitled to the employment tax credit if he/she receives one of the following types of income:

    • salary / wage;
    • business profit;
    • result from other activities.
The income must be earned with current work. So it is not applicable on unemployment benefits, long term disability benefits and pension payments for example.
The employment tax credit was introduced to compensate the employee for certain work related expenses which could be made but were not reimbursed. Before the tax credit was introduced the employees could deduct the costs (for a period for a fixed amount) but this led to many court cases. And so a much more straight forward system was introduced. The tax credit is also more fair since it depends less on the applicable tax rate.
The tax credit was also made applicable to persons with self employed income (business profit and result from other activities) although these persons can deduct their expenses though, unlike employees.
The amount of the employment tax credit depends on the amount of the total work related income and the maximum amount of the tax credit.
You can find more information about the amounts in our brochure about the figures for 2009-2012.
Attached Files
There are no attachments for this article.
There are no comments for this article. Be the first to post a comment.
Security Code Security Code
Related Articles RSS Feed
General tax credit - Am I eligible for it?
Viewed 1714 times since Wed, Jan 21, 2015
Deadline for General Tax Credit request
Viewed 2726 times since Fri, Apr 15, 2016
What is the general tax credit?
Viewed 19644 times since Thu, Dec 29, 2011