Since 2009, the number of self-employed people has risen from 63,2000 to 80,0000. This costs the government money because self-employed people pay less tax. As such, the cabinet would like to abolish the tax rebate for small entrepreneurs (zelfsstandigenaftrek), which costs the government about €1.8 billion in lost tax revenue.
Other rebates up for possible repeal are the starters rebate and the small business profit tax exemption, reported FD. Due to these tax rebates, self-employed people pay almost no tax on the first €24,000 earned each year.
Furthermore, the cabinet wishes to make it less attractive for employers to hire self-employed people. The government intends to accomplish this by introducing a disposal no income tax (BGL). The BGL forces both parties in a labour agreement to check if any income tax needs to be paid. Currently, only the self-employed person is responsible. The goal of this legislation is to effectively combat income tax evasion.
According to RTLZ, Dutch Finance Minister, Jeroen Dijsselbloem, explained that limiting the number of self-employed people is not a goal of this legislation. He noted that self-employed people have few social securities but do enjoy relatively high income tax breaks.
An independent committee will investigate the position of self-employed people in the labour market. This investigation is pending as is the official proposals of the cabinet.
The government committee consisting of employees of several ministries, the central plan bureau and an independent chair, has to establish why the number of self-employed people has increased over the years. Also, the committee will analyse the consequences to the economic development, the social welfare system and government finances.