The DBA Act (Deregulation Assessment of Employment Relationships)
1. The Tax and Customs Administration will monitor bogus self-employment.
2. Companies that hire freelancers for work they do not perform independently may face fines and additional assessments.
3. The Tax and Customs Administration will implement significant changes for freelancers and companies that regularly hire freelancers.
2. It is important for freelancers to be aware of these changes to avoid potential sanctions.
1. These changes are intended to clarify employment relationships and prevent abuse of self-employment.
What is bogus self-employment?
Bogus self-employment means that someone performs work as an independent contractor (zzp’er), but is actually employed by the law. For example, because the freelancer cannot determine when and how the work is performed. This is also called disguised employment. The client is then effectively the employer, but does not pay the taxes associated with employment. Under the DBA Act, clients and contractors are jointly responsible for preventing bogus self-employment.
Enforcement of bogus self-employment
From January 1, 2025, the Dutch Tax and Customs Administration will fully enforce bogus self-employment. Do you hire a freelancer, but is this freelancer actually working under a disguised employment contract? Then you may receive a supplementary assessment. However, this assessment will not apply further back than January 1, 2025. From 2026 onwards, you may also receive a fine. You must be able to jointly demonstrate that your collaboration is not employment.
Mediation, temporary employment, payrolling, intermediation, or direct hiring
There are more than two parties involved in the creation and/or execution of the assignment? In that case, you must also assess the employment relationship. We ensure that your work is legally seen as self-employment, so that both the freelancer and the employer do not suffer any disadvantages, such as:
1. After a tax assessment has been imposed by the tax authorities.
2. Having to terminate work early because the agency does not want to create the appearance of bogus self-employment.
3. The freelancer returns to employment elsewhere to avoid risks.
Recently, it has become apparent that reputable agencies sometimes ask their freelancers to terminate assignments early to prevent this bogus self-employment. However, this is not always desirable for the freelancer and the client.
At Luckyjobs, we offer the solution. We also offer attractive, low agency/administration fees to encourage flexibility. Contact us as an employer or freelancer.