News

In fiscal – and social security law, a distinction is made between those self-employed and those being employed. This latter group has to pay payroll taxes and social security contributions on the wages or salary received. With the Assessment Employment Relationships (Deregulation) Act (hereafter called: the ”Act”), an attempt is being made to curb pseudo self-employment.

With this Act, the present VAR (Declaration of Independent Contractor Status) is being abolished. Instead, agreements can now be submitted for assessment to the Belastingdienst(Inland Revenue) in advance.

Using a model agreement is not mandatory, but – for a period of five years – parties can draw assurance from it as to the statutory payroll taxes and social security contributions.

The Belastingdienst´s website has a number of standard model agreements, also for specific branches and professional groups (e.g. general practitioners and IT-employees), on which a commission agreement can be based.

When commissioner and client prefer not to use a standard model agreement, they can submit an agreement of their own to the Belastingdienst in advance. The Belastingdienst will then strive to assess the agreement within a period of six weeks.

The Belastingdienst will (if possible) publish agreements that have been assessed, so that they can be used by other commissioners and their clients

Entry into force: 1 May 2016

Transitional regime: Clients (ZZP/Self-employed professionals) and commissioners have until 1 May 2017 to determine whether they think it necessary to use a model agreement.