On Sep. 6, NLD SAE confirmed plan to lift enforcement moratorium.
NLD SAE confirmed from Jan. 1, 2025, NLD Tax will enforce bogus self-employment, so companies and organizations hiring ZZP'ers for work they do not do independently, can then again receive both a fine, and additional assessments of the correct tax amounts.
The lifting of an enforcement moratorium is one of the measures NLD GVT is taking to combat bogus arrangements, and contributing to more certainty on the labor market.
A transitional period of 1 year applies where employers and employees will not receive fines if they can prove that they are taking some steps against bogus self-employment.
NLD GVT is also taking steps to improve the position of people on the labor market, so is including various legislative proposals in labor market package, to improve matters.
Previously announced measures are being extended, such as the mandatory disability insurance for self-employed persons and reduction of self-employed persons deduction.
The cabinet is now also taking this decision because the market has asked for clarity about the lifting of the enforcement moratorium, so that people can prepare for this.
In order to prepare the labor market for the lifting of the enforcement moratorium, the Tax and Customs Administration will continue to provide all clients and self-employed persons with various information and practical assistance in the run-up to Jan. 1, 2025.
Additional Tax Assessments
In practice, lifting the enforcement moratorium means NLD Tax can impose additional assessments during inspections if there is bogus self-employment within companies.
If an organization does not comply with rules, additional assessments can be imposed for up to 5 years back, but only retroactively up to Jan. 1, 2025, the date of the lifting.
Model Agreements
NLD GVT also announced model agreements will no longer be approved by NLD Tax, as use of such model agreements is no longer tenable, because model agreements cannot provide any certainty in advance about working outside of an employment relationship.
Current model agreements will though still be honored until end date of an agreement.
Additional Documentation
As well as the announcement, NLD SAE also provided a copy of a letter sent to NLD PRL on the lifting of the enforcement moratorium, with a copy of the Decision Notes.
Sep. 10, 2024 NLD Tax Update
On Sep. 10, 2024, NLD Tax provided an update on the enforcement moratorium.
Until now, the so-called enforcement moratorium has applied to enforcement around employment relationships, however, this will change from Jan. 1, 2025.
If it is later determined during an audit that there is a case of employment, then a correction obligation and an additional assessment of payroll taxes can be imposed.
In such cases, NLD Tax will not retroactively apply measures before Jan. 1, 2025, unless there is evidence of malicious intent or failure to comply with instructions.
Regulators
NLD GVT; NLD SAE; NLD Tax
Entity Types
Corp
Reference
PR, 9/10/2024; Lt 2024-0000438328, PR 9/6/2024; Nt 2024-0000424903, 8/23/2024
