The employer deducts tax according to the information on your tax card. Either by table (table card) or percentage (percentage card). Most employees with a fixed salary and one employer will receive a table card. If you have several employers or you receive benefits from more than one source, tax will normally be deducted according to a set percentage rate.
You can find which table number or percentage rate is used for your deductions on your payslip and tax deduction card.
Differences in table cards and percentage cards
- A table card is based on the relationship between income and deductions. The higher your monthly income, the higher the tax deduction. The table is based on the relationship between income and deductions in order to reduce the risk of you paying too little or too much tax. You must ensure that both taxable income and deductions are entered with the correct amounts. In order to avoid underpaid tax, it’s important that only your main employer use the table card for tax deductions on your base salary. For tax deductions on overtime, bonuses or secondary income, the employer must use the percentage card.
- A percentage card has a set percentage rate that the employer uses to deduct tax. The percentage is based on the income and the deductions that are stated on your tax card application. Unlike table-based deductions, percentage deductions do not take account of changes in the relationship between income and deductions. If you have higher or lower income or larger or smaller deductions than what is stated on your application, you will risk paying either too little or too much tax.
No tax deduction cards are issued for seafarers who are resident abroad. Specific deduction tables have been introduced for seafarers who are liable for tax under section 2-3, subsection 1 (h) of the Taxation Act.
- 0100 Deduction table Class 1.
For tax on seafarer's salaries with 10 percent standard deduction, 30 percent seafarer's allowance.
- 0101 Deduction table Class 1
For tax and national insurance contributions on seafarer's wages with 10 percent standard deduction, 30 percent seafarer's allowance.
The tables apply to seafarers resident abroad.
The table has been calculated based on regular deductions throughout the year and therefore results in smaller deductions. No exemption from deductions should therefore be given during the holiday period and before Christmas. The salary amount (the basis for the deduction) should be rounded downwards.