The wage tax and income taks have tax credits. The tax credits (labor, elderly and general tax credits) consists of a taks component and a premium component.
- Residents of the Netherlands receive the full discount, both the premium component and the tax component;
- Employees who are residents of a country in the EU of EEA, Switzerland or the BES Islands only receive the premium component of the tax credits and in addition they also receive the taks component of the labor credit only.
- Employees from outside the EU, or EEA, Switzerland or the BES Islands only receive the premium part of the tax credit.