New Rules for Freelancers and Payroll Taxes in 2025
An overview of the rules on self-employment and payroll taxes in 2025, bringing challenges for freelancers and employers.
The Dutch government is introducing stricter rules for self-employment starting January 2025. These changes, part of the Employment Relationships Deregulation Act (DBA Act), aim to prevent false self-employment but have already caused significant concern among freelancers and employers.
What’s Changing for Freelancers?
The DBA Act is designed to clarify when someone is genuinely self-employed and when they are essentially working as an employee. If a freelancer does not meet the conditions for entrepreneurship, such as having control over their work hours or using their own tools, they may be classified as falsely self-employed. This could result in serious financial consequences:
Freelancers may need to repay tax benefits, such as the self-employed tax deduction.
Employers might face penalties, including paying back taxes and possible fines.
To avoid these issues, both freelancers and their clients must assess their working relationship. Tools provided by the Tax Authorities can help determine if a job qualifies as self-employment.
Why Are Freelancers Quitting?
The upcoming stricter enforcement has already led to a 30% increase in freelancers ending their self-employment compared to last year. In the first half of 2024, 77,000 freelancers deregistered, many choosing to become employees instead.
Sectors like government, healthcare, and business services have seen the most significant impact. Trade groups have also reported concerns, with some freelancers feeling discouraged by the increased administrative burden and tighter rules.
Updates for Employers: Payroll Tax Changes in 2025
The Dutch Tax Authorities have also published updates on payroll taxes for 2025, which include:
New rules for public transport reimbursements and wage cost benefits.
Changes to expat tax schemes (30% ruling).
Removal of the enforcement moratorium means stricter checks on working relationships.
Employers must comply with updated payroll tax regulations or face penalties.
For full details, businesses can refer to the Payroll Tax Newsletter 2025.
Balancing Regulation and Support
While the government aims to ensure fairness in the labour market, critics argue the rules could discourage entrepreneurship and complicate business relationships. Trade groups urge the government to focus on low-income freelancers who are at greater financial risk, rather than targeting genuine entrepreneurs.
If you’re a freelancer or employer, it’s essential to review your contracts and working arrangements now to prepare for the changes in 2025.