Government Delays Full Penalties for Bogus Self-Employment Until 2027

Phased enforcement approach gives employers and freelancers time to adjust as moratorium ends after years of uncertainty

The Dutch government is introducing a phased approach to enforcing rules against bogus self-employment, with full penalties delayed until 2027. Starting in 2026, only deliberate violations will be fined, while companies that merely "neglect" to comply will face a grace period before penalties kick in. The announcement provides some breathing room for employers and freelancers navigating complex rules after years of enforcement uncertainty.

What Is Bogus Self-Employment?

Bogus self-employment occurs when a person is officially classified as a self-employed worker (freelancer) but, in reality, works like an employee. This can allow employers to pay lower taxes and social security contributions than they would for an employee, creating both fiscal and social risks.

In practical terms, this means someone has a freelance contract (zzp-contract) but their actual working relationship looks like regular employment—they work fixed hours at the employer's location, take orders from a supervisor, use company equipment, and have little real independence in how they work.

The Dutch tax authorities use a comprehensive approach to determine whether someone is truly self-employed or working in a disguised employment relationship. They look at the actual working conditions, not just what the contract says.

The Long Road to Enforcement

The path to current enforcement has been complicated. The DBA Act (Assessment of Employment Relationships Deregulation Act) was introduced in 2016 to combat bogus self-employment, but proved unclear and difficult to apply in practice. This led to widespread confusion among both employers and freelancers about what was actually allowed.

The Tax and Customs Administration maintained an enforcement moratorium until the end of 2024, limiting penalties like fines to avoid disruption in freelance hiring. The moratorium ended on January 1, 2025, after which the agency can apply the standard rules, imposing back taxes and fines when bogus self-employment violations are detected.

However, ending the moratorium abruptly after years of limited enforcement created anxiety in the business community. Many companies had built their staffing models around freelance arrangements that might not withstand scrutiny under strict enforcement.

The New Phased Approach

Recognizing these concerns, State Secretary for Tax Affairs has announced a gradual enforcement strategy:

2026: Only deliberate violations will be penalized. The Tax Administration will fine employers and freelancers who knowingly break the self-employment rules to gain financial advantages. Cases where arrangements clearly violate the spirit and letter of the law will face enforcement action.

2027: Full enforcement begins. From 2027 onward, even companies that merely "neglect" to comply—meaning they didn't intentionally violate rules but failed to properly structure their freelance relationships—will be subject to penalties.

This phased approach gives businesses and freelancers roughly two years to review their arrangements and make necessary adjustments before facing the full weight of enforcement for all violations.

What Makes Someone Truly Self-Employed?

The Dutch tax authorities evaluate several criteria to determine genuine self-employment. While no single factor is decisive, key warning signs of bogus self-employment include:

Working exclusively for one client: If a freelancer works primarily or exclusively for a single company, this suggests an employment relationship rather than true self-employment.

Obligation to accept assignments: If the freelancer must accept work offered by the client rather than having freedom to decline, this indicates employment.

Fixed working hours and location: Working according to set schedules at the employer's premises resembles employment more than freelancing.

Fixed hourly or monthly payment: Receiving a regular hourly wage or monthly fee instead of project-based pricing suggests employment.

No business resources: Using the client's equipment, software, and materials rather than owning your own business tools indicates dependence typical of employment.

No entrepreneurial risk: If the freelancer has no real business risk—no investment, no potential for profit or loss beyond their labor—this suggests employment.

Integration into operations: A recent focus has been the "integration criterion." If the freelancer's activities are closely intertwined with the company's core business operations, this strongly suggests bogus self-employment. Courts have confirmed that integration is an independent factor in determining employment status.

The tax authorities stress they use a holistic approach—looking at the entire working relationship rather than checking boxes. Even if a contract looks legitimate on paper, the actual working practices determine the classification.

Consequences of Bogus Self-Employment

Both employers and freelancers face serious consequences when bogus self-employment is discovered:

For employers:

• Back payment of wage taxes (loonheffingen) for the entire period
• Back payment of social security contributions
• Fines and surcharges for non-compliance
• Potential criminal charges in cases of deliberate fraud

For freelancers:

• Income tax returns may be revised—income may be reclassified as wages
• Business deductions (aftrekposten) for self-employed persons may be disallowed
• Retroactive loss of self-employment benefits and tax advantages
• Requirement to repay benefits received as self-employed

The financial impact can be substantial, particularly for relationships that have existed for several years. Back taxes and contributions can accumulate into tens of thousands of euros.

How to Avoid Violations

Both employers and freelancers can take steps to ensure their arrangements comply with the rules:

For employers:

• Hire multiple freelancers for similar work rather than relying on one person long-term
• Allow freelancers genuine independence in how and when they complete work
• Use project-based contracts with clear deliverables rather than hourly arrangements
• Don't integrate freelancers into your organizational structure like regular employees
• Ensure freelancers use their own equipment and tools where practical
• Document the business rationale for using freelancers rather than employees

For freelancers:

• Work for multiple clients to demonstrate genuine self-employment
• Maintain your own business infrastructure (website, invoicing system, insurance)
• Set your own rates and negotiate terms rather than accepting standardized employment-like arrangements
• Keep evidence of entrepreneurial activities (marketing, business development, investments)
• Be consistent—ensure your actual working practices match what your contract claims

The key principle: the reality of the working relationship must match the legal classification. If it looks like employment, acts like employment, and functions like employment, it will be treated as employment regardless of the contract language.

New Legislation Coming

The current DBA Act will eventually be replaced by new legislation called the VBAR (Clarification of Employment Relationships and Legal Presumption Act), expected to take effect in 2026. This new law aims to provide clearer guidance and more certainty for both employers and freelancers about what constitutes genuine self-employment.

Until the VBAR becomes law, companies must navigate enforcement under current DBA rules as clarified by recent court decisions. The phased enforcement timeline provides some cushion, but the direction is clear: the era of lax enforcement is ending.

What This Means in Practice

The phased approach gives businesses and freelancers breathing room to adjust, but shouldn't be mistaken for indefinite tolerance. Companies that knowingly maintain bogus self-employment arrangements will face enforcement beginning immediately in 2026, while those who simply haven't properly reviewed their practices have until 2027 to get compliant.

Tax advisors recommend that companies with significant freelance workforces conduct thorough reviews of all their freelance relationships now, before 2026 enforcement begins. This means examining not just contracts but actual working practices to identify relationships that may be reclassified as employment.

For freelancers, the message is similarly clear: diversify your client base, maintain genuine business independence, and ensure your working practices support your self-employed status. The financial consequences of reclassification can be severe, making prevention far preferable to dealing with enforcement after the fact.

The government's phased approach represents a compromise between immediate full enforcement and continued moratorium. It acknowledges the complexity of the issue and the disruption that sudden strict enforcement would cause, while making clear that the long period of regulatory forbearance is definitively ending.