Enforcement of Assessment of Employment Relationships (Deregulation) Act postponed to 1 January 2020 | Deloitte Netherlands

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Enforcement of Assessment of Employment Relationships (Deregulation) Act postponed to 1 January 2020

State Secretary for Finance Snel extends the transition period for the Assessment of Employment Relationships (Deregulation) Act to 1 January 2020. However, possibilities for addressing malicious intent will be widened from 1 July 2018.

20 February 2018

Another delay

On 9 February 2018, State Secretary for Finance Snel announced that the Tax Administration will once again postpone enforcement of the Assessment of Employment Relationships (Deregulation) Act (Wet DBA) - now up to 1 January 2020. However, the enforcement policy to tackle persons with malicious intent will be tightened up as early as on 1 July 2018. Since there is much confusion in practice about the concept of relationship of authority, the government will also respond to the request from the House of Representatives to clarify how this term is to be interpreted.

Malicious intent

The Tax Administration already enforces the new Act in serious cases of malicious intent, which means frauds or scams involving deceit, forgery, or conspiracy and situations that lead to serious distortion of competition, economic or social disruption, or where there is a risk of exploitation.

As indicated above, this enforcement policy will be tightened up effective 1 July 2018 and action will be taken against any and all persons who deliberately create or maintain a situation of manifest pseudo self-employment. In this respect, the Tax Administration will have to prove the existence of all of following criteria:

  • (fictitious) employment;
  • manifest pseudo self-employment;
  • deliberate pseudo self-employment.

New legislation

The cabinet plans use the intermediate period for developing a new regulation based on the assumptions laid down in the coalition agreement. This new regulation will be drafted in consultation with representatives of the parties involved (employers, employees and self-employed persons). The ambition is to sumbit a bill for advice to the Council of State this year, so the parliamentary debate can start in the first half of 2019. Barring unforeseen circumstances, it should be feasible to have the new measures take effect on 1 January 2020.


Source: Letter to Parliament entitled “Roadmap vervanging DBA”, 9 February 2018, reference number 2018-00000019932

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