The DBA Act was officially introduced on May 1, 2016. The government has set up a transition period of one year for companies to comply. We are now six months further and a lot has been discussed. Where are we now with Wet DBA in the IT-intermediary sector?
WIBA IT is a member of Bovib. Thanks to that membership, WIBA IT not only receives a lot of insight into the new legislation but also has a say in the contents of the model agreements. At this moment, version 1.8 of the model agreements is ready. The Bovib is now negotiating with the IRS on small issues that are disallowed in the agreements. On the main issues, there is already an agreement with the IRS, about which we’ll talk further.
Study into the model agreements
The fact that many model agreements are disapproved, has raised questions and an independent commission (the Boot commission) was set up to examine the way these model agreements are evaluated. The results are expected on December 19, 2016. It is expected that it will become clear based on when the agreements are judged and whether the evaluations match the expectations in the sector in question. Based on the commission’s recommendations, we hope to be able to share more information and to coordinate our processes.
What have we learned?
Our colleague has attended various assemblies about the new law, where he gathered valuable intel about the new legislation. He indicates that the most important change has to do with the way activities are described by freelancers and organization. According to the new law, there must not exist a labour relation between the freelancer and the hiring party. By describing the assignment in detail, the IRS will be less inclined to start an investigation into a possible labour relation. The freelancers demonstrate being an entrepreneur rather than being on the company’s payroll.
WIBA IT has made a checklist concerning describing the assignment. With that checklist, the assignment can be described in detail, indicating that hiring the freelancer for the activities involved was necessary. The checklist will be provided as soon as possible.
For the freelancer
For freelancers, there is also a number of important things, to which we will dedicate a separate article. For now, the crucial question is: “am I an entrepreneur? If the answer to that question is yes, it is important to present yourself as such in all your public expressions, for example, LinkedIn, Facebook, your CV, business cards, etc. So check your profile. WIBA IT is convinced that real entrepreneurs will be able to keep working as freelancers under the new legislation.