The Tax Authorities have reassessed the G-Nius model agreement and approved it again for a period of 5 years. The G-Nius model agreement describes the employment relationship between the client and the contractor. The agreement can demonstrate that a freelancer is not employed by the client.
Model Agreement Act DBA
In 2016, the Deregulation of the Assessment of Employment Relations Act (Wet DBA) came into effect. From this, the model agreements were introduced. These model agreements describe the employment relationship between the client and the freelancer and between the intermediary and the freelancer. The agreement must be sent to the tax authorities for approval, which can then approve it for a period of 5 years.
For the self-employed, it is important that it is clear to the Tax and Customs Administration that there is no paid employment so that there is no obligation to pay payroll taxes. By using the model agreement, clients and contractors can assume that no additional assessment for payroll tax and employee contributions will be imposed by the tax authorities.
What does the DBA Act mean?
On 1 May 2016, the Deregulation Assessment of Employment Relations Act (DBA) came into effect as a replacement for the Declaration of Employment Relationship (VAR).
Clients and freelancers are responsible for making agreements within their employment relationships. They also establish that there is no paid employment. When doubt arises, a model agreement can provide certainty. Unfortunately, the introduction of the DBA Act has not produced the desired result and has therefore not brought the clarity it was intended to bring.
The Rutte III cabinet has therefore decided to replace the DBA Act. The aim was to do this on January 1, 2021, but this replacement will be left to the successive cabinet. The DBA Act and the associated model agreement will thus remain in force until further notice.
Model agreement G-Nius
The G-Nius model agreement is in line with the usual agreements that a client makes with a freelancer. By making use of this agreement, the client and contractor can demonstrate to the tax authorities that they are not employed.