Statutory withholdings on 1 January
On 1 January each year, the statutory withholdings are adjusted by the government. Zwitserleven is required by law to apply these amended withholdings to the gross benefits. The amended withholdings mean that you will receive a higher or lower net payout from Zwitserleven than what was paid to you in the previous tax year.
With effect from 1 January 2020, more wage tax tables apply. This is due to the difference between residents and non-residents of the Netherlands for the tax credits.
Like wage tax, the tax credit consists of a tax portion and a contribution portion. As of 2019 (in the context of wage tax) the tax portion of the tax credit will only apply to residents of the Netherlands. Therefore, for benefit recipients who do not live in the Netherlands, only the contribution portion of the tax credit is taken into account in the wage calculation where the tax credit is claimed.
From 2020 onwards, the wage tax tables make a distinction between 5 groups of benefit recipients:
- Beneficiaries who are residents of the Netherlands;
- Beneficiaries who are residents of Belgium;
- Beneficiaries who are residents of another country from the country circle (other EU country, Norway, Liechtenstein, Iceland, Switserland or one of the BES islands);
- Beneficiaries who are residents of Suriname or Aruba;
- Beneficiaries who are residents of a third country, i.e. a country which does not belong to any of the above groups. From 2021, Great Britain will also be included in this group.
There will be separate wage tax tables for all current wage tax tables, one for each of the 5 groups of benefit recipients. Since 2020, for example, there are 5 green monthly tables.
Zwitserleven is required to withhold from the payout(s) unless an exemption (decision) is granted. This exemption (decision) must have been issued by the Dutch Tax and Customs Administration.
Customs Administration as soon as it is issued. For more information, please visit the website of the Tax and Customs Administration.
Withholdings
Less wage tax is withheld from your pension benefit than from your salary. This is because you no longer pay premiums for employed persons insurance schemes. When determining the amounts to be withheld, the Tax and Customs Administration's green tables will apply.
You can choose whether or not you want us to apply the wage deductions tax credit. The wage deductions tax credit is not applied by Zwitserleven by default. The wage deductions tax credit is a discount on the payable wage tax/ social security contributions. In addition to your pension, another type of benefit will usually also be paid to you, such as a state pension, benefits under the Dutch Incapacity for Work Act, surviving dependants' benefit insurance or benefits under the Dutch Work and Income (Capacity for Work) Act (WIA, formerly WAO).
The wage deductions tax credit may only be applied by one employer/benefits agency. It is best to apply the wage deductions tax credit to your highest income. To change the wage deductions tax credit, you can print and fill out this wage tax form from the Tax and Customs Administration and return it to us. We will adjust the wage deductions tax credit for the next payout.
Apart from wage tax, an income-related contribution will also be withheld from your pension benefits under the Dutch Healthcare Insurance Act. This withholding is 5.32% of the gross amount. A maximum of €3,810 may be withheld per year per benefits agency. These data are applicable for 2024.
More information about the Dutch Healthcare Insurance Act contribution.
What will change if you also receive a state pension?
From the month when you start receiving your state pension, you will no longer pay any state pension contributions. This means that Zwitserleven will only withhold wage tax (excluding state pension) and Dutch Healthcare Insurance Act (Zvw) premium from your gross pension benefits. In the period before you are entitled to your state pension, you will still have to pay state pension premiums.
More information about these changes is available on the website of the Tax & Customs Administration.