Are you prepared for the changes in the ‘WKR’ (Werkkostenregeling)? Are you paying the right...
Does your company use the services of subcontractors or hire labour from recruitment companies? If so, you will be subject to the Dutch chain liability legislation (WKA). This means you can be held liable for unpaid wage tax or social security contributions of your contract partners. What can you do to limit these risks?
Keeping chain liability risks under control
As a contractor or when using temporary staff, you can take protective measures to reduce your liability risks. It all starts with building a good relationship with your subcontractors. This not only requires proper identification of the parties you are working with, but also accurate identification of all the temporary staff. The specialists of Mazars can support you to meet the requirements, such as:
- Identifying external (third-party) employees
- Keeping accurate project records and organising process management
- Advising on chain liability payments to a g-account or to the chain liability account of the Dutch tax administration
Companies from all sectors that hire labour or construction services from third parties can be held liable. Some sectors, such as construction, IT, oil & gas and metal industry, usually run a higher risk of claims with regard to chain liability. More specifically, this issue affects:
- Contractors and subcontractors (building & construction, shipbuilding, etc.)
- Recruitment companies and temporary employment agencies
- Self-employed individuals
Foreign companies and employees
Chain liability also applies in case you are hiring the services of foreign companies and employees. This requires special care and attention to manage the chain liability risks involved. Mazars is experienced in dealing with cross border situations and can assist both you and your subcontractors to keep compliant with Dutch tax legislation to reduce chain liability risks as much as possible.
More specifically, we can advise about:
- Payroll, tax and social security requirements in the Netherlands, the 183-day rule and risk of increased tax exposure for unidentified personnel
- Registration for NEN 4400-1 and 4400-2 and with the Chamber of Commerce
- Work permits and/or residence permits and the registration of foreign employees in the Netherlands (including BSN – Sofi-number)
- Dealings with the tax administration, labour inspection, social security office (UWV) and A1 applications (SVB)