Less wage tax is withheld from your pension benefits than from your salary. This is because you no longer pay premiums for employed persons insurance schemes. The green tables of the Dutch Tax and Customs Administration will be used to determine the amounts to be withheld.
You can choose whether wage deductions tax credit will or will not be applied by us. 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 5,50% of the gross amount. A maximum of €3283,83 per year may be withheld per benefits agency. These data are applicable for 2022. Click here for 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 the 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.
Do you have any questions about these changes? Please visit the Tax and Customs Administration website for more information.