Tax authorities will start checking for pseudo self-employment from 2025

It is not always easy to make a distinction between a “genuine” self-employed individual and someone who is classified as a freelancer but is essentially equivalent to an employee. Until 2016, in such cases, the Declaration of Employment Relationships (VAR) was used to provide clarity. In 2016, the VAR was replaced by the Act on the Assessment of Employment Relationships (DBA Act).

The DBA Act introduced model contracts for specific sectors, which enabled clients and contractors to demonstrate that there is no employment relationship. However, the law proved to be unsuccessful. Consequently, it was decided to suspend enforcement of these rules. Currently, the tax authorities can only enforce these rules and impose corrections, additional adjustment of tax assessments, or to impose fines to “malicious” employers. However, the government announced that this situation will come to an end on January 1st 2025. The enforcement pause will cease, and the tax authorities will focus on providing clarity in advance, so that employers know where they stand. At the same time, the government acknowledges that some level of uncertainty is inevitable, given the prolonged suspension of enforcement. This autumn, the government will release a letter about self-employment issues.

More from the HBK Update June 2023

• New (temporary) legislation regarding box 3
• Holding on to definitive assessments and objections with income in box 3
• Restructuring box 3 assets before October 1st (valuation date arbitrage)
• Excessively lending act
• Limitations/Abolition of Business Succession Facilities
• Tax authorities will start checking for pseudo self-employment from 2025
• Convert loss from substantial interest into tax credit
• No tax-free allowance for each day working from home
• Repaying Deferred Tax Payments
• MIA and Vamil
• Reimbursement of costs for assistance with filing income tax return for foreign employees
• Co-operating spouses: Co-operating remuneration or co-operating tax deduction?