Netherlands: Independent contractor proposal could alter usage

flag of the netherlands

Flag of the Netherlands (photo credit Wikipedia)

From Staffing Industry Analysts —  “A Dutch legislative proposal could affect the use of independent contractors by ending tax incentives and making it less appealing for companies to hire them….

 

[Independent contractors] are eligible for start-up tax breaks and corporate tax breaks available to small companies. However, they also receive a tax-free allowance of €7,280 per year on earnings.

 

The three financial incentives combined mean that independent contractors pay very little tax on the first €24,000 they earn. Ending the incentives could net the government as much as €1.8 billion each year.

 

Ministers are also making efforts to make it less attractive for employers to use independent contractors by tightening up the definition of what constitutes self-employed. An independent contractor who is deemed to have only one employer would be considered pseudo self-employed and the employer could face a fine from the tax office….”

 

Read the full story at Netherlands: Independent contractor proposal could alter usage.

 

 

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