1,25 Miljoen ZZP'ers Onder Vuur: Strenge Handhaving Belastingdienst vanaf 1 Januari 2025 ❗️

Summary

The Dutch government is set to tighten regulations on freelancers (ZZP'ers) starting January 2025, focusing on whether there is a legitimate entrepreneurial relationship or a disguised employment situation. This policy shift, driven by the DBA law, will impact over 1.25 million ZZP'ers and their clients, particularly in sectors like healthcare and education, potentially causing significant disruption. The government’s approach has been criticized for creating unintended consequences, including the risk of near-term legal and financial repercussions for businesses and freelancers. The conversation highlights the challenges of this policy and its broader societal implications.

Takeaways

• 😀 The Dutch government is set to enforce stricter regulations on freelancers (ZZP'ers) starting January 1, 2025, with an end to the moratorium on enforcement of the DBA Act.
• 😀 The DBA Act aims to distinguish between independent entrepreneurs and disguised employees, which could have significant tax implications for both freelancers and companies that hire them.
• 😀 Over 1.25 million freelancers in the Netherlands are affected, with concerns about the potential negative impact on sectors like healthcare, education, and construction, where many work as freelancers.
• 😀 Some freelancers (e.g., security guards or carpenters) may be deemed 'disguised employees' because they work under the control of a company and have little autonomy, leading to tax liabilities for the hiring companies.
• 😀 The Dutch tax authorities will focus on identifying clients (employers) that hire freelancers, rather than auditing individual freelancers, to determine whether they are truly independent or should be classified as employees.
• 😀 Companies hiring freelancers need to assess whether they are at risk of facing large tax backpayments and penalties if the freelancer is deemed a disguised employee.
• 😀 The Dutch tax authorities could impose retroactive tax penalties, meaning that employers may be held responsible for back taxes for multiple years of misclassification of freelancers as independent contractors.
• 😀 There is a significant risk for companies that continue hiring freelancers without being sure they are complying with the law, as they may face severe financial consequences if audited.
• 😀 Freelancers who prefer to stay independent should consider setting up a BV (a Dutch limited liability company) to protect their personal assets in case of legal or tax issues, such as retroactive tax claims.
• 😀 The discussion highlights the broader trend of government regulations potentially undermining freelance work, with some entrepreneurs contemplating relocating abroad to escape the restrictive environment in the Netherlands.

Q & A

What is the new regulation that will be enforced on 1st January 2025 concerning ZZP'ers (self-employed individuals without employees)?

Starting from 1st January 2025, the Dutch government will begin strictly enforcing the DBA (Deregulation of Employment Relations) law, which aims to define when an individual is considered self-employed (ZZP'er) or in a formal employment relationship. The main focus is on determining whether there is a 'supervision' relationship between the ZZP'er and their clients, which would classify them as a disguised employee rather than a true entrepreneur.

What is the concern raised by the Second Chamber regarding the enforcement of this law?

The VVD (People's Party for Freedom and Democracy) raised concerns about how the law would be enforced. Specifically, they questioned whether the enforcement measures would be more damaging than the problem they aim to solve, particularly in sectors like education where there may already be a shortage of workers due to these regulations.

What is the main issue with the current implementation of the DBA law according to experts?

Experts argue that the DBA law fails to clearly define the criteria for determining whether someone is self-employed or an employee. This lack of clarity has led to confusion and delays, as the government has been unable to create concrete and specific criteria since the law was introduced in 2016.

Why is the Dutch government concerned about the number of ZZP'ers?

The Dutch government is concerned because ZZP'ers contribute less to social security and other taxes compared to employees in traditional employment. Many ZZP'ers opt for this status to avoid paying social security contributions, which puts a strain on the country's welfare system.

What is the definition of a 'schijnzelfstandige' (pseudo-self-employed person)?

A 'schijnzelfstandige' refers to someone who presents themselves as self-employed but in reality is working under conditions that closely resemble an employment relationship, with little to no entrepreneurial risk. An example would be a worker who works exclusively for one client, follows strict instructions, and lacks control over their own business operations.

What will the government do to enforce the DBA law starting in 2025?

The government plans to focus on controlling the employers who hire ZZP'ers. The tax authorities will examine the financial records of these companies to identify any patterns that suggest an employee-employer relationship rather than a genuine self-employment scenario. Employers found violating the law will be required to pay back taxes, including penalties.

What advice is given to companies hiring ZZP'ers under the new regulations?

The advice is for companies to stop hiring ZZP'ers if they are unsure whether their practices comply with the new regulations. The risk of facing large penalties and back taxes is too great. Companies are encouraged to transition ZZP'ers into formal employment contracts to avoid potential legal complications.

How might the enforcement of this law disrupt various industries?

The enforcement of this law could significantly disrupt industries that rely heavily on ZZP'ers, such as healthcare, education, and construction. There is a risk that many self-employed individuals in these sectors may be forced into employment contracts, leading to potential shortages of workers and operational disruptions.

What is the potential impact on ZZP'ers who are found to be in disguised employment relationships?

ZZP'ers who are found to be in disguised employment relationships may face retrospective tax assessments and penalties. They could be classified as employees, which means their earnings will be treated as wages, subject to tax and social security contributions, and the employer will be liable for unpaid taxes.

What is the significance of the 'plan B' for entrepreneurs in the context of these new regulations?

Given the uncertainty and potential financial risks posed by the new regulations, many entrepreneurs are considering developing a 'Plan B.' This might involve setting up a BV (limited liability company) to protect personal assets in case of financial liabilities, or even relocating to another country to escape the stricter regulations and taxes in the Netherlands.