Payroll tax reduction

Every employee has the possibility to choose for a payroll tax reduction when entering the workforce. Via DSPE, you can decide whether you want the payroll tax reduction to be applied to your salary.

Payroll tax is the collective name for wage tax and national insurance contributions. The national insurances consist of the General Old Age Pensions Act (AOW), the General Surviving Dependants Act (Anw) and the Long-Term Care Act (Wlz). You pay the wage tax over your gross salary. You do not have to arrange this yourself: The AUAS will deduct the payable wage tax from your gross salary and remit it directly to the Tax Administration (Belastingdienst).
When you start working at the AUAS, you can opt for a reduction in the taxable income tax rate. There are all kinds of tax credits, such as the general tax credit and the employment tax credit. The tax credits can only be applied with one employer (usually the company where you earn the most). With the tile 'Payroll tax reduction' under Self-service in DSPE, you can decide whether you want this reduction to be applied to your salary. You can change this as often as you like, for example if you have another income besides your salary from the AUAS, but this is not possible with retroactive effect beyond the year's limit.

For more information on the income tax and social insurance contributions credit, visit the Tax and Customs Administration website.

Published by  Administration Centre 1 April 2022