Loonheffingskorting, or payroll tax credit is a tax reduction that means you pay less income tax, so you take home more money.
This credit is designed to support people with low and middle incomes. The higher your income, the smaller the credit. If you activate the payroll tax credit with your employer, it’s applied directly to your regular pay, so you don’t have to wait for your annual tax return.
The credit doesn’t apply to bonuses or allowances.
One Employer
You can only turn on the payroll tax credit with one employer at a time. If you have other income besides Temper, it’s smart to think carefully about which employer you apply it to. Keep the following in mind:
Multiple employers: If you have more than one job, you can only use the tax credit with one employer. Choose the employer where you earn the most, for example Temper.
Other income: Do you have income besides Temper for example as a freelancer? Keep in mind that if you earn a significant amount elsewhere and turn on the payroll tax credit with us, you could end up getting too much tax benefit. In that case, it might be better not to apply the credit.
How to activate the payroll tax credit at Temper
You can easily turn on the payroll tax credit at any time. Go to your profile and switch on the Loonheffingskorting toggle. If you do this before Wednesday 10 am, the change will take effect for your payment on Friday. Otherwise from the week after.
You can also switch it off anytime, for example if you start earning more at another employer.
Haven't switched it on?
No worries! If you don’t activate it, you’re not missing out. When you file your annual income tax return next May for the previous year, you will still get back any tax you overpaid.