DBA law in the Netherlands: What self-employed professionals need to know

Understanding the DBA law

The DBA (Deregulering Beoordeling Arbeidsrelaties) law in the Netherlands was introduced on May 1, 2016. This law was designed to replace the VAR (Verklaring Arbeidsrelatie), which previously allowed self-employed workers to declare their employment status. However, concerns arose over false self-employment, also known as disguised self-employment (schijnzelfstandigheid). Here, employers and freelancers avoid taxes and social security contributions by labeling what were essentially employment relationships as freelance contracts.

To clarify the distinctions between genuine self-employment and disguised employment relationships, the DBA law was introduced. 

Key provisions of the DBA law

The DBA Act sets out criteria for assessing whether someone is actually self-employed or should be considered an employee. Key provisions of the DBA law include:

• Responsibility for compliance: Both the contractor (client) and the self-employed person share the responsibility for ensuring that the working relationship is accurately classified.
• Contract clarity: Contracts between self-employed individuals and their clients must clearly outline the nature of the working relationship.
• Tax authority oversight: The Dutch tax authorities (Belastingdienst) may review contracts and determine whether the actual work performed aligns with the agreed terms.
• Prevention of disguised employment: The law seeks to prevent situations where self-employed professionals are treated like employees, such as working fixed hours under supervision or lacking autonomy in their work.

What changes as of 2025?

Starting January 1, 2025, full enforcement of the rules concerning disguised self-employment will begin. The Dutch tax authorities will carry out inspections based on a detailed Handhavingsplan (Enforcement Plan),which will outline the criteria for assessments and provide examples of different working relationships that may be classified as either self-employment or employment.

This change addresses long-standing issues with the DBA law’s implementation. While the law has been in place since 2016, enforcement has been minimal due to challenges in practical application and pushback from various sectors. The shift to stricter enforcement aims to ensure fairness in the labor market and reduce cases of misclassification.

Consequences of incorrect employment

If the Dutch tax authorities determine that a self-employed professional is, in fact, working as an employee, the consequences are as follows:

• For clients (employers): The client may face penalties, such as fines and the obligation to pay backdated social security contributions and payroll taxes.
• For self-employed professionals (ZZP): The freelancer may lose benefits associated with self-employment, including tax deductions for the self-employed and exemptions for SMEs (mkb-winstvrijstelling). The income may be reclassified as wages, leading to potential tax adjustments and repayment of tax benefits.
• Retrospective penalties: These penalties could be applied retroactively up to five years, but only for the period starting from January 1, 2025.

Examples of correct and incorrect ZZP situations

Example 1: Incorrect ZZP – Emma is an automation tester who works exclusively for one client. She uses the client’s equipment, follows the client’s established work schedule, and adheres to timelines set by the client. Emma does not have her own website, branding, or any other clients. Under the stricter enforcement starting in 2025, Emma’s work arrangement could be seen as disguised employment, and the client might face penalties.

Example 2: Correct ZZP – Olivia is an automation tester who maintains her own professional website and actively promotes her services. She writes technical blogs, offers consulting services, and works with several clients throughout the year. Olivia negotiates her deliverables and timelines independently, completing work based on agreed-upon milestones. She manages her own schedule and uses her own tools and resources. This arrangement demonstrates true self-employment, meaning Olivia would be considered compliant with the DBA law.

How can self-employed professionals prepare for DBA enforcement?

To mitigate the risks of reclassification and maintain compliance, self-employed professionals should take the following steps:

• Diversify client portfolios: Work for multiple clients to avoid appearing as if reliant on a single employer.
• Ensure contractual clarity: Draft comprehensive contracts that clearly define the scope of work, independence, and lack of traditional employment characteristics. The tax office offers templates of contracts, known as ‘Modelovereenkomsten’, that are valid for ZZP and can be downloaded from their website. Although the tax office has informed that they will no longer be checking and accepting new Modelovereenkomsten, it is up to the client and the ZZP to agree on the agreement. However, all Modelovereenkomsten that are still valid will remain in use until their expiration date.
• Maintain autonomy: Demonstrate control over working conditions, including setting work schedules and using personal tools and resources.
• Promote business branding: Actively market services and maintain an independent business presence, such as a website and promotional activities.
• Handle financial matters independently: Manage invoicing and bookkeeping autonomously.

A commentary on market reactions

We created this article in response to growing concerns and apparent panic within the self-employed community regarding the upcoming changes. Over the past months, many articles have either lacked accurate information or seemed designed to incite fear among zzp’ers. The aim here is to present clear, factual information to help self-employed professionals and their clients understand the implications of the DBA law and take informed steps to prepare.

Are you currently working as a ZZP’er in the IT sector and considering a shift to a permanent or temporary position due to the DBA law or other reasons? At IQ Staffing, we offer a flexible solution: you’ll have an employment contract with us while working on assignments for a variety of clients. This gives you the best of both worlds—the freedom and variety of freelancing combined with the stability and security of a permanent role. Our talent acquisition specialists are here to help you explore the employment options that best suit your needs. Contact us to schedule an introductory meeting and discuss your future opportunities.

Sources:

• Dutch Tax Authorities (Belastingdienst): Official guidelines and Handhavingsplan details
• Ministry of Social Affairs and Employment: Reports on employment law and ZZP compliance
• Dutch Chamber of Commerce (Kamer van Koophandel): Resources for self-employed professionals and their obligations

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