End of VAR

By: Together Abroad 27-01-2016 6:05 PM
Categories: ** HR Analysis, ** HR daily news,

The so-called Declaration of independent employment relationship (Verklaring Arbeidsrelatie, VAR) seems to have had its day. The Senate drew a majority which supports a repeal of the VAR on 1 May, 2016.

The VAR is intended to clarify whether companies must embody freelancers and pay payroll tax on their income. Secretary of State Eric Wiebes (Finance) wanted some time off from the VAR, but he ran into opposition in the Senate. He made a series of commitments. There will be a long transition period of one year.

The intension is that the VAR will be replaced by standard contracts. Those freelancers and companies should provide more clarity and certainty. In VAR, self-employed personnel were employed normally in practice, though not on paper. This is difficult to control, and the tax and financial consequences are always on the self-employed.

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