Since 2016, enforcement under the Deregulation of Assessment of Employment Relationships Act (Wet DBA) has been suspended. This enforcement moratorium will be lifted as of 1 January 2025. In preparation, the Dutch Tax Authority has published its document “Explanatory Notes on the Assessment of Employment Relationships”.
In it, the Tax Authority provides clarity on how it will assess employment relationships between principals and contractors, partly in light of the Supreme Court’s ruling in the Deliveroo case. From 1 January 2025, this framework will form the basis for enforcement action against false self-employment, and correction obligations, additional tax assessments and fines can once again be imposed retroactively.
Enforcement rules
On 6 September 2024, a letter to parliament was published in which the government stated that it wants to strengthen the labour market and make self-employment future-proof, including by lifting the enforcement moratorium. The Tax Authority will enforce more actively against false self-employment, although the assessment criteria themselves will not become stricter, and a holistic approach will continue to apply.
Model agreements
In addition, model agreements will be phased out as of 1 January 2025. The government takes the view that these agreements can create “false certainty”, since false self-employment can only be assessed after the fact, based on the actual circumstances. On 25 September 2024, the NSC party submitted a motion calling for support in assessing employment relationships through prior consultation, which was adopted.
Additional assessments, correction obligations and fines
Upon inspection, the Tax Authority can impose additional tax assessments for false self-employment, with retroactive effect of up to five years. The Tax Authority can apply retroactive correction as far back as 1 January 2025. A one-year transitional period applies during which no punitive fines will be imposed if it can be shown that steps have been taken against false self-employment. Default fines, however, remain possible.
What does this mean for your business?
We advise employers to review their contracts with self-employed contractors and check them for possible risks. The Tax Authority’s assessment framework can help with this. Do you have questions or doubts about possible false self-employment within your organisation? Our employment lawyers are ready to help.
