After the official instalment of the Rutte III cabinet on October 26, the amendment to the DBA Act is getting closer and closer. Although the enforcement of the new regulation has been postponed, it is good to know as a self-employed person what your position on the labour market could be. Do you as a freelancer already know your future position?
As a freelancer, it is important to realize your position on the labour market. But how do you determine your position in the market? Based on what criteria? In this article, we have tried to clarify the position determination criteria consisting of three factors. These factors are (1) nature of the assignment, (2) duration of the assignment and (3) hourly rate of the assignment. It is important to know that the nature of the assignment is divided into regular and non-regular business activities. Two diagrams have been drawn up to visualize the position determination.
Position with regular business activities
The first visualization relates to the regular business activities. These are the primary activities within an organization, for instance delivering pizza’s when you work at a pizzeria.
In the figure below, you can see that the highest pay grades in regular business activities can request an ‘opt-out’ arrangement, which is an agreement not to deduct income taxes. This only applies if to assignment under the duration of 12 months. In the middle segment, you can see that the model agreements are backed by a client declaration and a web module. The clients are responsible for applying for such a declaration. That is important to determine whether income tax and/or other taxes have to be paid to the IRS. The client declaration can be acquired by filling in an online questionnaire compiled by the government. Although at the moment, a lot is unclear about what that web module will look like exactly, the idea is that the new system will be a lot more transparent.
In addition to changes in the middle and top segments, there is also greater transparency in the lower segment, where the minimum hourly rate is set between 15 and 18 euros. If the hourly rate is less than the minimum, in the case of regular business activities, there always has to be a labour agreement.
Position in non-regular business activities
The difference in terms of the position on the labour market between regular and non-regular business activities has to do with the duration of the assignment in the lower segment. If the assignment lasts longer than three months, the new regulation indicates that a labour agreement has to be drawn up. For the middle and top segments, the same rules apply as with the regular business activities.
Compared with previous laws, the position is much clearer, as the bill now is formed. The former VAR and BGL consisted of several statements that had to be applied for. The design of an addition of a client statement utilizing a web module ensures that clarity can be created for each party. Another advantage is that the number of cases of inadvertent false self-employment and competition in terms of employment will decrease.
Relating to WIBA IT
As indicated earlier, WIBA IT will keep using the current model agreements until we know more about the exact details of the changes. We will keep a close watch on all the changes and as soon as there is anything to report, we will immediately post a message on our website. Of course, we also want to keep our partners and everyone else for whom this is an important issue up to date. So if you are a freelance, supplier or client and this subject is relevant to you, make sure to follow us on LinkedIn, Facebook en Twitter and we will keep you informed.