India: Council of State breaks down new VBAR law for self-employed: ‘Clarity still needed’

A clear connection point with a tariff limit

For self-employed people at the bottom of the market, the introduction of a rate limit (€33 per hour), according to the Council of State, offers a clear starting point for determining when there is an employment relationship. This can help to better protect vulnerable workers against underpayment and unfair practices. The Tax Authorities should focus their efforts mainly on controlling these situations, instead of enforcing false self-employment in general.

Call for a business buffer and the preservation of tax benefits

The advice of the Council of State is sending the minister back to the drawing board. An important message is that independent entrepreneurs should be recognized and supported, rather than stifled. Other measures, such as promoting a business buffer for the self-employed through tax benefits, can help to better manage the risks. This will provide more security for the self-employed without abolishing the existing system of tax benefits such as the self-employed person’s deduction.

Reform for a future-proof labor market

The urgent advice from the Council of State indicates that the VBAR bill does not provide the clarity and solutions needed for the problems in the current labor market. So the debate about the position of the self-employed seems far from over. In the period ahead, the focus must be on reforms that are in line with the existence of a flexible labor market and that support the self-employed in their entrepreneurship.

Read the full advice from the Council of State

Do you need help?

For questions about the DBA Act, the Entrepreneurs Collective has had a help desk for years where members can go with questions about fraudulent self-employment, model agreements and how to avoid the risk of being fraudulently self-employed as an individual. reduce self-employment. As of this year, this help desk has been expanded with a VBAR help desk including a useful flow chart to verify your working relationship. Read more via www.vbar.nl.