Netherlands: Soft Landing Enforcement Moratorium for Bogus Self-Employment Partially Extended in 2026

The enforcement moratorium on payroll taxes was abolished on 1 January 2025. This means that the Tax and Customs Administration is now allowed to enforce the classification of employment relationships in order to combat bogus self-employment. During the first year, there was a so-called “soft landing,” with the emphasis on education and recovery rather than sanctions. Initially, the intention was to resume full enforcement, including the imposition of fines, on 1 January 2026. However, on 18 December 2025, the government agreed to partially extend the so-called “soft landing” until 1 January 2027.

In concrete terms, this means that the Tax and Customs Administration will not impose any default penalties in 2026 and that supervision will generally start with a company visit. However, penalties may be imposed for deliberate and serious violations (malicious intent). In addition, it will still be possible to impose retroactive additional assessments from 1 January 2025. It therefore remains essential for employers who work with self-employed persons to critically assess employment relationships.

 

Introduction of the DBA Act and the enforcement moratorium

The Assessment of Employment Relationships (Deregulation) Act (DBA) came into force on 1 May 2016. This Act is intended to clarify whether someone who performs work is legally classified as an employee or as a self-employed contractor. In practice, the DBA Act caused uncertainty in the labour market. Significant undesirable labour market effects were: (i) due to uncertainty, clients were hesitant to hire self-employed persons; (ii) the distinction between entrepreneurship and employment did not always correspond to practice; and (iii) labour legislation was perceived as too restrictive by clients (at the lower end of the market) and contractors (at the upper end of the market).

Due to these problems, the government decided to suspend enforcement. This so-called enforcement moratorium was in effect until 1 January 2025. During this period, no additional tax assessments could be imposed for incorrect classifications of employment relationships.

 

“Soft landing” in 2025

To ensure a smooth transition following the end of the enforcement moratorium, the Tax and Customs Administration has introduced a “soft landing.” This approach is intended to give employers time to bring their employment relationships into compliance. Although enforcement is possible as of 1 January 2025, the authorities will take into account the complexity of employment relationships and will initially focus on guidance and cooperation.

In practice, enforcement will typically begin with an exploratory company visit, which has no immediate legal or financial consequences. Additional tax assessments can only be imposed following a formal audit, although a company visit may result in a warning indicating that adjustments are required. In 2025, no penalties will be imposed unless there is malicious intent or serious misconduct. Employers and contractors are supported through tools such as preliminary consultations and the Web Module for Assessing Employment Relationships.

 

Partial extension in 2026

The original intention was to limit the transition year to 2025. However, under pressure from the House of Representatives, it was agreed at the end of December to partially extend this transition period. In 2026, most things will remain the same as in 2025: inspections and additional assessments will still be possible and regular absenteeism fines will not yet be imposed.

New in 2026 is that penalties for offences will be possible in cases of demonstrable intent or gross negligence. These fines can range from 10% to 100% of the additional tax assessment. This applies, for example, when warnings from the Tax and Customs Administration have been deliberately ignored or if it can be proven that an employer was aware of the fact that self-employed persons were hired unlawfully.

After the transition period, enforcement will return to normal. From 2027 onwards, penalties for non-compliance may also be imposed again. These are usually 3% of the additional tax assessment, with a statutory maximum per tax return period.

 

Possible new legislation assessing employment relationships

In order to provide on when work qualifies as employment or self-employment, the government is preparing new legislation to clarify the relevant criteria. Two draft proposals are currently under consideration: the VBAR Act from the previous cabinet and a private member’s act from the House of Commons, the Self-Employed Persons Act. It is up to the next government to decide which proposal will be adopted.

Key Points for HR

• HR must be able to demonstrate that the organisation actively pursues a policy to prevent bogus self-employment. This includes established assessment processes, contract analyses, and periodic reassessments of the use of self-employed workers.
• Although no fines for non-compliance will be imposed in 2026, warnings or instructions from the Tax and Customs Administration may later lead to fines for intentional or gross negligence. HR plays a key role in monitoring, recording, and implementing improvement measures.