What is life-course leave tax credit in SAP PY-NL - The Netherlands?

SAP Term: life-course leave tax credit

• Component: PY-NL

• Component Name: The Netherlands

• Description: A tax credit to which an employee is entitled in case life-course savings are paid. The tax credit is known in the Netherlands as 'levensloopverlofkorting'.

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• Key Concepts: 
  The life-course leave tax credit (LCLTC) is a tax credit available in the Netherlands for employees who take a leave of absence from work for a period of at least three months. The credit is designed to help employees cover the costs associated with taking a leave of absence, such as childcare, housing, and other expenses. 
  
  How to use it: 
  In order to be eligible for the LCLTC, employees must meet certain criteria. These include having worked for at least two years in the Netherlands, having taken a leave of absence for at least three months, and having earned at least €2,000 in the year prior to taking the leave. Employees must also submit an application to their employer or the Dutch Tax and Customs Administration. 
  
  Tips & Tricks: 
  Employees should be aware that the LCLTC is only available for leaves of absence taken between 1 January 2020 and 31 December 2021. Additionally, employees should keep in mind that the amount of the credit is based on their income level and the length of their leave. 
  
  Related Information: 
  For more information about the LCLTC, including how to apply and how much credit you may be eligible for, please visit the Dutch Tax and Customs Administration website. Additionally, you can find more information about other tax credits available in the Netherlands on the same website.