Government delays full penalties for bogus self-employment, fines to start in 2027

Employers who fail to comply with the rules against bogus self-employment will still not face fines in 2026. Caretaker State Secretary for Finance Eugene Heijnen made the announcement after the Tweede Kamer, the lower house of Dutch parliament urged the Tax and Customs Administration to ease enforcement until March 31 next year. The government had previously refused a similar request to delay full enforcement of the law until the end of 2026. DENK MP Doğukan Ergin’s proposal received broad support in the Tweede Kamer.

Next year, the government plans to fine employers and freelancers who deliberately break the self-employment rules. From 2027, even companies that merely “neglect” to comply will be subject to penalties, the state secretary said.

Bogus self-employment occurs when a person is officially classified as a self-employed worker (freelancer) but, in reality, works like an employee. This can allow employers to pay lower taxes and social security contributions than they would for an employee, creating both fiscal and social risks.

The Tax and Customs Administration maintained an enforcement moratorium until the end of 2024, limiting penalties like fines to avoid disruption in freelance hiring. The moratorium ended on January 1, 2025, after which the agency can apply the standard rules, imposing back taxes and fines when bogus self-employment violations are detected.

To ease the transition, the government introduced a 2025 enforcement strategy emphasizing guidance, company inspections, and warnings prior to imposing significant fines. This approach is commonly referred to as the “soft landing,” where businesses are first cautioned before penalties are applied.

This is the second time that the Tweede Kamer has requested an extension of the “soft landing.” Heijnen previously rejected a similar motion, saying it would be “undesirable” to delay full enforcement of the law targeting bogus self-employment.

Ergin stated that he had gone “as far as possible” to meet the State Secretary halfway by asking for just a three-month extension. Originally, the Tweede Kamer wanted the Tax and Customs Administration to hold off on additional assessments for all of 2026 when employers breached the law.