The number of people in the Netherlands who have quit self-employment has increased by 30 percent in 2024 compared to last year, according to Onderneming.nl. This has come about as Dutch tax authorities plan to crack down on false self-employment from 2025.
According to the Chamber of Commerce (KvK) in the first half of 2024, 77.000 freelancers had deregistered as self-employed workers. This is quite a bit higher than the 60.000 workers who deregistered in the same period last year.
Trade association ZZP Nederland is also experiencing a flood of deregistrations. “It is something we have noticed,” chairman of ZZP Nederland, Frank Alfrink told Onderneming.nl. “We ask retiring members every now and then about the reason for their deregistration, lately the answer is increasingly that they are going to become an employee.”
According to Alfrink many of the freelancers ending their self-employment work in government, business services and healthcare. “You even hear that memos are circulating in the corridors of the House of Representatives about ministries no longer being allowed to hire self-employed persons from January 1,” said Alfrink.
Many of the organisations representing freelancers have noticed the negative effects of the planned enforcement of the self-employment law. From 2025, the Dutch tax office (Belastingdienst) is set to start enforcing the Employment Relationships Deregulation Act (DBA Act) which would see more checks carried out to ensure “false self-employment” isn’t taking place.
However, the extra admin this creates for freelancers and the pressure the regulations put on the employment relationship between employers and self-employed individuals is leading to a decrease in entrepreneurship. More and more often, potential freelancers are being deterred from setting off on their own. In the first six months of this year, only 110.515 people registered as freelancers - around 10.000 less than in the same period in 2023.
ZZP Nederland believes it would be a better strategy for the tax authorities to focus on ZZP’ers (self-employed people) who are working for such low rates that they wouldn't be able to withstand financial burdens such as sick leave and business taxes. “A dishwasher who charges 15 euros per hour cannot cover his entrepreneurial risks, just like migrant workers who work for a ridiculous hourly wage in the greenhouse horticulture or meat sector. Our message to The Hague is: bring focus. Leave the real entrepreneurs alone."