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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