Wage code 480: Acquisition/deductible costs
Acquisition/deductible costs are a discount on taxable income, given by law because someone works. Celery applies it automatically, so employees pay a bit less tax.
What are acquisition/deductible costs?
- Working costs money. Clothes and shoes wear out faster, and getting to work costs money too.
- The Tax Authorities think part of these costs should be covered.
- So they set a fixed amount that is taken off the income before tax is calculated.
- Celery applies this amount automatically.
Good to know: This is not real money. It's an amount on paper that lowers the tax. The employer doesn't pay it to the employee, and the employee doesn't get it from the Tax Authorities.
Who gets it?
In principle, all employees get this discount. There are two exceptions:
- Retired: People in this category don't get it, because they no longer work.
- Expats: People in this category don't get it. The law gives expats other tax benefits instead.
Exception for expats: On Bonaire, St. Eustatius and Saba, expats do get the discount.
How much is it?
| Country | Amount |
|---|---|
| Aruba | 3%, up to AWG 1,500 per year |
| Bonaire | Up to USD 280 per year |
| Curaçao | Up to XCG 500 per year |
| Saba | Up to USD 280 per year |
| St. Eustatius | Up to USD 280 per year |
| St. Maarten | Up to XCG 500 per year |
| Suriname | 4%, up to SRD 4,800 per year |
Known difference in Aruba and Suriname
Sometimes code 480 is not applied in an extra run, even though it should be.
Why? Celery works this way on purpose. The maximum amount for the period is often already used in the regular run.
Don't worry: in December, or when an employee leaves, Celery always recalculates code 480 for the full year. The final amount is then correct.