Netherlands Tax Blog – Tax developments self-employed persons

Proposed bill employment qualification

1. Bill proposal

On 7 July 2025, the bill proposal "Clarification of the Assessment of Employment Relationships and Presumption" was submitted to the Dutch House of Representatives. The bill outlines certain indicators for the existence of an employment contract and includes a legal presumption. If adopted, the proposed legislation is scheduled to enter into force in 2026.

The bill introduces two principal amendments:

2. Criteria for Employment Classification:

It codifies case-law which provides elements to clarify whether work is performed in the context of an employment relationship based on two core elements:

• The existence of work-related or organizational control exercised by the client in relation to the worker, such as receiving instructions and being subject to supervision regarding the work performed; and
• the lack of working on one's own account and at one’s own risk, such as bearing financial risks, working independently, and the short-term nature of the assignment.

3. Legal Presumption of Employment

If work is performed for another party against remuneration of €36 excl. VAT per hour or less, it is presumed that such work is performed under an employment contract. This presumption does not apply when work is performed for a natural person who is not acting in the exercise of a profession or business, and may only be invoked by the worker, not the client or employer.

Active enforcement by the Dutch tax authorities

4. Active enforcement against pseudo-self-employment as of 1 January 2025

The legal definition of an employment relationship directly affects the tax qualification and is therefore also relevant for tax compliance and enforcement by the Dutch Tax Authorities. 
Since 1 May 2016, the Assessment of Employment Relationships Deregulation Act (Wet deregulering beoordeling arbeidsrelatie, or DBA) has been in effect. This law outlines the criteria for determining whether someone is self-employed or working under an employment contract.

However, enforcement of the DBA was largely suspended for several years due to a government-imposed moratorium. That changed on 1 January 2025, when the moratorium was lifted. From that date onward, the Dutch Tax Authorities resumed active enforcement against pseudo-self-employment. They are now authorized to retroactively impose additional tax assessments in cases where workers were misclassified.

5. Tax and legal implications

Classifying a contract as an employment relationship can have significant tax and legal implications for both contractors and their clients. These may include:

• Retroactive payroll tax obligations, including wage tax and social security contributions.
• Fines, interest, and penalties imposed by the Dutch Tax Authorities.
• Employer obligations, such as paying employee insurance premiums, contributing to the Health Care Insurance Act (Zorgverzekeringswet), and participating in mandatory pension schemes.
• Employment law protections, including rules around dismissal and disability benefits.
• VAT consequences, such as requalification affecting VAT status, requiring corrections of previously deducted VAT, along with interest and penalties.

Payroll taxes can be assessed from 1 January 2025 onward, while VAT adjustments can go back five years.

Important developments in case law

6. Case law

Recent rulings by the Supreme Court have clarified how to assess on how to qualify an employment relationship assess whether a working relationship qualifies as an employment contract. These rulings have gained even more importance for tax purposes, following the lifting of the enforcement moratorium on pseudo-self-employment as of 1 January 2025.

In the Deliveroo judgment of 24 March 2023 and the Uber judgement of 21 February 2025, the Supreme Court established a framework for evaluating employment relationships. Among others, the Supreme Court ruled that a holistic approach must be applied, meaning that all relevant facts and circumstances must be considered — including the nature of the work, the level of control, financial risk, and organizational integration.

These recent judgments have become an important tool for the Dutch Tax Authorities for qualifying employment relationships and the principles laid out in these cases have been reflected in proposed legislation.

How we can assist clients

7. Impact of the recent developments

The proposed bill is expected to impact a substantial number of contractors and their clients. According to the explanatory memorandum, an estimated 200,000 individuals in the Netherlands may be classified as pseudo-self-employed.

Determining whether a working relationship qualifies as an employment contract has become increasingly complex. If the Dutch Tax Authorities conclude that a contract between the contractor and their client constitutes an employment relationship, this may lead to retroactive taxation, including wage tax, social security contributions, interest, and fines. The financial exposure can be substantial.

While financial risks can sometimes be shifted to the contractor through contractual arrangements, this is not always permissible under the law.

8. Our value

Eversheds Sutherland is an international full-service law, tax, and notary firm renowned for its experience in all areas of law. We are a multidisciplinary tax team, and we work closely with the employment team and other practice areas combining our skills and expertise to provide integrated solutions. This enables us to handle every case with exceptional skill and thoroughness, to assist clients in analysing contracts, and to advise on making these more futureproof from a legal and tax perspective.

9. How we can assist

• Reviewing existing contracts and working arrangements
• Assessing tax risk exposure under the new legal framework
• Advising on compliant contract structures 
• assistance in case of audits or disputes with the tax authorities