One of the most requested services is the “request reduction of wages”. This is the request that can be made by anyone who is paying interest rates for a mortgage and or personal loan and working for an employer.
Yearly employee salary
Employers only calculate the yearly salary (net full-year wage) of each employee and based on the calculations, they calculate the amount of payroll tax the employee should pay each year. Employers do not consider any personal expenses of their employees.
Reduction of annual wages calculated
Each employee can request a reduction in wages which is calculated by the employer. This can be requested when the employee or spouse is paying an interest rate on a personal loan or mortgage. The employee cannot just ask his employer to reduce the employee’s payroll tax. This can only be requested at the DIMP by submitting the “request reduction of wages” including proofs like the bank’s interest letters.
The tax inspector will verify all submitted documents and will notify the employee of the outcome through a decree. The decision is forwarded by the employee to the employer for execution.
The reduction of the yearly salary means the employee will be paying less payroll tax during the corresponding thus receiving a bit more on the net income each month.
How to submit the request for a reduction of wages?
The request for a reduction of wages can be submitted online together with all the required documents. Please visit www.impuesto.aw and click on “Digitale formulieren” followed by “Verzoek vermindering loon”. The digital form is easy to complete and uploading of documents is also very user friendly. This makes it more convenient for employees to submit the form digitally instead of in person at the Tax Department.
For more information please visit the Tax Department’s website www.impuesto.aw.