Self-employed contractors, private limited companies
Contractors working through their own limited companies, be it locally registered or foreign, are faced with complex regulations and legislation when coming to work in the Netherlands.
Mazura can help foreign and local entrepreneurs to set-up Dutch registered companies and take away the burden that comes with having to handle the invoicing and compliance requirements.
We provide advice on what type of company set-up is best for your personal situation and handle the application process with the authorities as well as the drafting of required contract paperwork.
The current DBA legislation requires carefully managed contracts which can be difficult to navigate for foreign entrepreneurs. Mazura has ample experience in setting up contract paperwork using standard model agreements approved by the Dutch tax authorities, tailored to the specific needs of your Dutch project, thereby reducing the risk of noncompliance significantly.
We also offer financial services for limited companies, ranging from invoice cycle handling to pre-financing, against competitive fees.
Closing of your Dutch project usually means having to deal with tax filings. Mazura can assist in completing your tax obligations in the Netherlands, and also advise on how to handle your local tax submissions.
- Company registration
- Contract advice
- Finance and salary administration
- Factoring
- Tax advice
Can I work as a self-employed contractor in the Netherlands?
If you consider working as a self-employed individual (sole trader or one-man band) it is important to verify whether you comply with the current DBA legislation. Not meeting the criteria of the DBA legislation can expose you to future tax claims from the Dutch Tax Authorities. In such cases, all invoices sent by your company will have to be payrolled as an employee with retrospect to 5 years, which will leave you with a huge tax liability.
Am I a self-employed contractor or an employee?
On the first of May 2016, the VAR certificate was replaced by the new bill “Wet Deregulering Beoordeling Arbeidsrelaties” (“DBA”). The VAR certificate was issued by the Dutch Tax Authorities and stipulated how your income was classified. If it specified that your earnings were classified as income from a company, then you were exempt from liability for wage tax and social security premiums. Under the new DBA rules, you and your clients need to make the assessment yourselves. The Tax Authorities will only assess the classification of your income when you file your annual tax return. Meaning some work could be classified as employment retrospectively.
A self-employed contractor will be classified as a real entrepreneur if the criteria of the DBA are met. Some of the key criteria under the DBA Act are:
- I can replace myself with someone else without approval from my client
- I do not need to follow instructions from my client on how to do my work, I only have to ensure to deliver the result that is expected by my client
- I use my own set of tools or I pay my client for using their tools
Want to learn more about the criteria in the DBA legislation?
Download here our free DBA information brochure