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Deduction, tax reduction, tax credit: what differences?

Verified 01 January 2022 - Legal and Administrative Information Directorate (Prime Minister)

There are several ways to reduce your income tax.

One deduction is an amount that is taken out of your income.

This income can be one of the following:

One tax reduction is an amount deducted from your tax (for example, tax reduction for donations to general interest organisations).

It applies only if you have a tax to pay.

One tax credit is also an amount deducted from your tax (for example, child care expense tax credit).

Unlike the tax credit, the tax credit is refunded in whole or in part if:


sums less than €8 are not refunded.