Due to an amendment of the law, as of 25 May 2017, it is no longer possible for temporary employment agencies to be classified in the sector fund in which more than 50% of their workforce is available for contract. This “occupational sector” payroll, however, does still apply to temporary employment agencies that were classified in an occupational sector before 25 May 2017 or that had applied for such a classification. Temporary employment agencies and comparable employers that do not fall under this standard will now be classified in the relatively expensive “temporary employment” sector.
In the Netherlands, every employer pays contributions to a sector fund. These funds were set up to finance unemployment benefits. Employers are classified in a sector fund on the basis of their business activities. The sector contributions payable in the various sectors vary widely.
The contribution for the “temporary employment” sector is one of the highest. According to settled case law, classification in the temporary employment sector is determined on the basis of the type of contract. This must involve an employer that makes an employee available to a third party to work under the management and supervision of that third party. Until recently, “occupational sector” relief was available for the temporary employment sector—this allowed employers to be classified in the (often much less expensive) sector in which more than 50% of their workforce was available for contract. This ended as of 25 May 2017.
Read a June 2017 report prepared by the KPMG member firm in the Netherlands
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.