Will the yearly Wage Tax be recalculated using the Income Tax Table?
No. Here’s why.
In the mid-1990s, the government introduced Wage Tax Tables to make payroll simpler. There’s one for each pay period, such as the Monthly Wage Tax Table.
What this means for you:
- Each payslip uses only its own Wage Tax Table. For example, a monthly salary uses the monthly table.
- There’s no need to redo the sums at the end of the year. The government doesn’t require a recalculation using the Income Tax Table (the table used for your yearly tax return).
- Small differences are normal. Using period tables can cause small differences compared to the yearly amount. That’s expected.
- The Tax Administration won’t send an extra bill for these differences. A court decision from 25 June 2009 confirms this.
- Any differences are settled in your yearly Income Tax return.