False self-employment – what will change for entrepreneurs?

What is false self-employment?

From 1 January 2025, the Belastingdienst is introducing full enforcement of the rules on schijnzelfstandigheid (false self-employment). These rules were enacted in 2016 as Wet DBA (Dutch Assessment of Employment Relationships Act — Wet Deregulering Beoordeling Arbeidsrelaties), but ran into implementation difficulties and their enforcement was suspended for some time.

How to avoid false self-employment?

To avoid having self-employment classified as false, entrepreneurs should follow several rules:

• Cooperation with multiple clients — Working for various clients shows that you are not financially dependent on a single client
• Owning your own tools and materials — Using your own resources demonstrates greater professional independence
• Independent decision-making — As an entrepreneur, you should have control over the organisation of your work, the place, time and methods of carrying out the assignment
• Financial risk — A self-employed person bears responsibility for the results of their work and the financial risk

Consequences for businesses

If the Belastingdienst (Dutch Tax Administration) finds that a company is cooperating with a self-employed person under false self-employment, it may be fined and charged with back-payment of social security contributions for up to 5 years (however, the penalty will only apply to the period after 1 January 2025).

For the self-employed person, the consequences include:

• Income correction
• Loss of tax deductions (including entrepreneur deduction and SME exemption)
• Obligation to pay back taxes
• Possibility that the client gives up further cooperation

It is worth emphasising that during the first year of the new rules, a transitional period has been provided — companies will not be penalised if they prove they are taking steps to resolve the false self-employment problem.

Summary

The new rules aim to streamline the self-employment system and prevent abuse. To avoid penalties, you should comply with the rules on service contracts, ensure flexibility of cooperation and proper documentation. It is worth consulting a tax advisor.