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Loonheffingen: which is the best way to pay income tax

anzcute · 2011-04-30 17:27:10

Hi, I recently just got my first job in the Netherlands. I am employed under a recruitment agency and I need to choose the way I want to pay my income tax. They called it "Loonheffingen". I tried to go to the Belastingdienst website but still I couldn't find a good explanation of what this is. My employment agency just…

30-04-2011 5:27pm

#1

anzcute

Closed Accounts Posts: 1 ✭

Join Date: April 2011

Posts: 0

Hi,

I recently just got my first job in the Netherlands. I am employed under a recruitment agency and I need to choose the way I want to pay my income tax. They called it "Loonheffingen". I tried to go to the Belastingdienst website but still I couldn't find a good explanation of what this is. My employment agency just explained me briefly if I want to pay my taxes monthly (which in turn will give me higher net salary every month) or yearly filing where they set aside a higher amount of my salary for taxes and get a refund after.
So I have the following questions:
- I want to know which is best for me and what could be the difference between the two.
- How are the computations for these taxes if I choose one over the other.
- What can I gain aside from a lump sum amount due to the refund?

Hope someone can answer these questions.

Thanks in advance!!!

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