DBA Act & Freelancers: Stay Compliant and Prevent False Self-Employment in 2025
Significant changes for freelancers in 2025: stay compliant with the DBA Act
In 2025, stricter enforcement of the DBA Act by the Tax Authority will bring increased scrutiny on false self-employment. Ensure your compliance as a freelancer. Prepare with our insights or schedule a consultation for tailored advice.
DBA Act 2025: Inspections on False Self-Employment
In 2025, the Deregulation of Employment Relationships Act (DBA) will replace the Declaration of Employment Relationship (VAR). This legislation aims to combat false self-employment. For freelancers, this means the Tax Authority may assess whether your relationship with the client genuinely qualifies as an independent working relationship or resembles an employment contract.
Tax Authority: Fines and Additional Assessments for Freelancers
Starting January 1, 2025, the Tax Authority will enforce stricter measures against false self-employment. Currently, warnings are issued during business visits, but next year marks a shift to action: violations may result in fines and additional tax assessments for both clients and freelancers.
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- Access to a wide range of exciting projects
- Compliance with regulations and security
- Flexible contract options
- Professional support for development
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False Self-Employment: What Freelancers Need to Know
What is False Self-Employment?
False self-employment occurs when someone presents themselves as a freelancer but is effectively in an employment relationship. The Tax Authority can assess this by examining the work arrangement. If they determine an employment contract exists, both you and your client may face financial consequences.
Key indicators of false self-employment include:
- Being overly dependent on a single client.
- Maintaining a long-term relationship with the client.
- Working under the client’s instructions.
False Self-Employment: Risk, Consequence, and Solution for Freelancers
Analyze the risk:
As a freelancer, you must be aware of the risks of non-compliance with laws and regulations. This can result in corrections and loss of tax benefits, such as the self-employed deduction.
Calculate the consequence:
Organizations are becoming more cautious about hiring freelancers due to increased scrutiny. This may make it harder for you to secure assignments.
Find the right solution:
Want to continue working as a freelancer in a way that suits you? At Skippersroad, we offer a variety of contract options, allowing you to focus on what you do best without the burden of administration and legal risks. Let’s explore what works best for you! This way, we help you remain flexible or transition to a permanent position.
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