As from 1 May 2016, the Assessment of Employment Relationships (Deregulation) Act (in Dutch: “Wet Deregulering Beoordeling Arbeidsrelaties” or “Wet DBA”) entered into force. As a result, the Labour Relations Declaration (in Dutch: “Verklaring Arbeidsrelatie” or “VAR”) is abolished. This means that new assignments for independent contractors must be contracted in compliance with the new act.
In order to exclude risks in advance and to be sure about the work relationship between the independent contractor and the company, it is important to ensure that there is no possibility of any employment relationship between the parties and that the contractor is not working under any form of authority. In order to facilitate this, the Dutch Tax Authority published several ‘model agreements’ that may be used. Please note that there is a lot of discussion about the quality of these ‘model agreements’.
Initially, an implementation phase of one year applied. However, due to numerous concerns regarding this new act, the minister extended the implementation phase to – in any case – 1 January 2018. Until this date, a reticent enforcement policy applies and the Tax Authority will assist organisations with the implementation, unless the company is “evidently malicious”. In the latter case, the Tax Authority will immediately impose fines and/or an additional tax assessment.