Tax reduction for study costs or other education related expenditures
- Name of the instrument - Local language
- Aftrek studiekosten of andere scholingsuitgaven
- Name of the instrument - English translation
- Tax reduction for study costs or other education related expenditures
- Type of instrument
- Tax incentive for individuals
- Type of entry
- Single instrument
- Short description
Adults can deduct the costs of their education and training -related to their current or future job - from the base of their individual income tax. The State co-funding, in the form of foregone tax revenues, equals to the eligible costs multiplied by the marginal tax rate (between 5 % and 52 % in 2014). Maximum EUR 15 000 can be deducted (2014).
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Key scheme
- Legal basis
Law on income tax 2001
- Objective(s) and target(s)
To stimulate individuals to take care of their own employability and compensate them for the training costs they bear for their career purposes.
- Year of implementation
Dutch tax authority
- Eligible group(s)
All persons paying income tax
- Group(s) with preferential treatment
- Education and training eligible
Formal education and training programme related to a person’s (future) job.
- Source of financing and collection mechanism
State (loss of tax revenue)
- Financing formula and allocation mechanisms
Deduction from tax base
- Eligible costs
Fees and other costs related to education and training (costs of training material, depreciation costs).
- Frequency of the use
- Volumes of funding
Based on 1996-2002 data, the funding amounted to 105 000 000 per year.
- Beneficiaries/take up
No data on beneficiaries is available. Around 2% of the whole workforce of the Netherlands are estimated to take benefit of the scheme each year.
- Monitoring/evaluation reports available
- Most relevant webpage - in English
- Most relevant webpage - local language
Explanation of the tax reduction scheme by the Dutch Tax Authority: download.belastingdienst.nl/belastingdienst/docs/studiekost_scholinguitgaven_ib2661t33fd.pdf
SEO Economic Research, Effectiveness and Use of the Tax Reduction for Study Costs, 2005 http://www.seo.nl/uploads/media/826_Gebruik_en_effectiviteit_van_de_aft…