The DBA Act: the consequences
On 1 May 2016, the Declaration of Independent Contractor Status (VAR) was repealed and made way for the Assessment of Employment Relationships Deregulation Act (the DBA Act). A transitional period applies until December 31 2017. During this period, the Dutch Tax and Customs Authority will use the mild enforcement protocol and the self-employed will have an opportunity to put their affairs in order, so that they comply with the requirements of the DBA Act.
The main purpose of the DBA Act is to address and reduce fraudulent contractor status. ‘Fraudulent contractor status’ refers to a person who formally enjoys the status of an independent contractor, but who in practice is an employee and is treated as such. At present, additional wage tax assessments can in fact only be charged to the supplier (the independent contractor). Under the DBA Act, it will also be possible to charge these to the client.
Brainnet model agreement
The model agreement Brainnet has submitted to the Tax and Customs Authority has been approved. With the introduction of the DBA Act, it has become important for independent contractors and clients to be able to show that they do not have an employment relationship. An agreement approved by the Tax and Customs Authority is crucial here.
As an independent staffing specialist, we believe in a transparent world and aim for fair opportunities for everyone in the labour market. Access to the right knowledge and appliance of laws and regulations is an important basic condition for everyone who wants to work on creating a level playing field. We want to contribute towards the creation of a level playing field. This is why we make the Brainnet model agreement available for providers of professionals and for market parties.
It is important to read the guide, so that you interpret the matters in the agreement correctly.
Please let us know if you have any questions concerning the above. You can contact us by calling +31 30 6021617 and asking for the Resource Management department.
DBA Act Toolkit: 15 practical tools
Avoid tax claims!
Know what you need to do. As a staffing specialist, we have been working on an extensive knowledge dossier relating to the DBA Act during the past year. On the basis of this dossier, we have compiled a practical DBA Act Toolkit for clients.
Do you want to know what the plans regarding the DBA Act look like? We have set out the facts.
Do you want to receive background information?
Read through the details of the Act? Together with lawyers and employment experts, we have combined all findings on the DBA Act in a special memorandum. This memorandum has now already been downloaded more than 1.000 times!
In recent months, we have organised walk-in consultations and information sessions throughout the country. Are you a client or independent contractor? Call us to make an appointment, and we will discuss the details with you. Telephone: +31 30 6021617
Temporary agency work or payrolling: alternatives in cases of doubt
If there are doubts about independent contractor status, it is possible to choose between a temporary agency work and a payroll construction. Our two affiliate companies Flexbrain and Infraflex offer possibilities for employing independent contractors and hiring out the professional via a temporary agency work or payroll construction.
Does Brainnet have an approved model agreement?
The model agreement which Brainnet has presented at the Dutch Tax Authorities has been approved. Brainnet has received the formal approval on March 10, 2016. The model agreement is available from now on for everyone who wishes to use it.
When does the new DBA Act enter into force?
The Declaration of Income taxes (VAR) has been deactivated as of May 1, 2016. From that date the Assessment of Employment Relationships Law (Wet Deregulering Beoordeling Arbeidsrelaties, in short: Wet DBA) has been activated. There is a transitional period until May 1, 2017.
Until when is the VAR valid?
The VAR was valid until May 1, 2016. The Dutch Tax Authorities will maintain a protocol of mild retention in the first year. In that way everybody will have the time to take care of things. Checks may go to back as far as April 1,2016 so it’s imperative that the changes are implemented by you as soon as possible.
I am an independent contractor with a contract via Brainnet. Do I have to do anything?
Brainnet organises information sessions and consultations about this subject. You also have the opportunity to schedule an individual appointment or can wait until we send you new information. Brainnet will of course work with model agreements. We gladly inform you about the model agreements which are applicable for your assignment.