Self-check new “VAR”

In a draft bill it is proposed that in 2015 the “Declaration of Income Tax Status” (Verklaring arbeidsrelatie; VAR) will be replaced by a “Decision Exemption from Payroll Tax Withholding” (Beschikking geen loonheffingen – BGL).

The BGL replaces all current four types of VAR-statements. It will only state whether a principal is obliged to withhold Dutch wage tax. Different from the current VAR-system, the principal will only be indemnified against wage tax withholding obligations if the content of the BGL matches the actual situation. Therefore, the principal should actively check whether the BGL is correct.