Tax

Work relation of self-employed

Replacement of the Deregulation Labour Relations Assessment Law (Wet DBA)

 

Last modified: 15 November 2017

 

According to the recent government policy accord, the controversial Deregulation Labour Relations Assessment Law (DBA) will be substituted. There will be a minimum rate for sole traders, a possibility to opt-out and a client’s statement by filling in an online module. The new law is aimed at guaranteeing the clients of sole traders that there is no employment relationship and to prevent false self-employment. The self-employed will be divided up fiscally depending on their position in the market;

 

1. Contract for low rate self-employed

 

For the self-employed at the lower end of the job market there will always be a contractual agreement if they offer their services for a low rate and they are working for the same client for longer than 3 months or regularly take on assignments from the same client.

 

2. Opt out


The self-employed at the higher end of the market will have the ability to opt out of wage tax and employee insurance premiums. This applies to traders who earn roughly above €75 per hour and are not working for the same client for longer than one year or do not take assignments from the same client on a regular basis.

 

3. Client statement


For the self-employed above the low rate, a ‘client statement’ will be introduced. The client can obtain this by filling in a web module. In this online form, the client answers a few questions about the nature of the work. This will clarify the work relationship between the two parties. The statement will provide the client with certainty and indemnity for the wage tax and insurance premiums. This indemnity will be void if it emerges later that the web module was not completed truthfully.

 

The self-employed and their clients will be allowed time to adjust to the new rules and regulations. The Belastingdienst will enforce the new rules cautiously for the first year and will offer coaching with the new rules.

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Freelancers