We deduct ‘loonheffing’ from your AOW pension. ‘Loonheffing’ consists of wage tax and national insurance contributions under the Anw survivor benefit scheme and the Wlz long-term care scheme.
You do not have to pay tax and national insurance contributions on all of your income. You can also get tax credits. This means you will pay less in tax and contributions.
‘Loonheffingskorting’ consists of a number of different tax credits. For your AOW pension, you can get up to 3 tax credits: the general tax credit, the elderly person’s tax credit, or the single elderly person’s tax credit.
If you have more than 1 income, for example AOW pension and an additional pension, you must make sure you only get tax credits for 1 of your incomes. Otherwise you will pay too little in tax, which you will then have to pay later. It is usually best to ask us to apply the tax credits to your highest source of income.
If you have more than 1 income, for example wages, AOW pension and an additional pension, it is usually best to ask us to apply the tax credits to your wages.
You can choose to get tax credits:
- on your AOW pension.
This means you will get a higher net amount of AOW pension. Or,
- on your additional pension.
This means the net amount of your additional pension will be higher, but your net AOW pension will be lower
- on your wages.
This means the net amount of your wages will be higher, but your net AOW pension and additional pension will be lower.
You can choose yourself whether or not you want us to apply the tax credits to your AOW pension. If you want to change your decision on tax credits, you can do so via My SVB.
You can ask us not to apply tax credits. This means your net monthly pension amount will be lower. At the end of the year, you will get a bigger refund from the Belastingdienst or the amount you have to pay back will be lower.
If your AOW statement shows €0 for ‘loonheffing’, we have been unable to apply all of the tax credits for you. This is because the amount of the tax credits is higher than the amount you have to pay in ‘loonheffing’ (tax and/or national insurance contributions). This means you have paid too much in tax. You can ask the Belastingdienst to refund the overpaid tax to you when you submit your tax return.
For more information about tax credits, visit the website of the Tax Administration (Belastingdienst)