New disclosure requirement for employers
Do you pay workers or service providers who are not employed by you? If so, you may have been accustomed to informing the Tax Authorities about this using an IB-47 form. Due to privacy legislation, this provision of information will become statutory as of 1 January 2022. This entails obligations!
Declaration of payment to third parties
Under the current rules, the Tax Administration may ask you to provide information about your payments to third parties. These are persons who work for you outside of an employment relationship, other than an entrepreneur or volunteer. With a so-called IB-47 form, the Tax Authorities could check whether the recipient was recording their income in their income tax return, because you also had to state the BSN number on the form. However, after the introduction of the General Data Protection Regulation, the necessary legal basis for this was lacking. Hence, in 2018 the Tax and Customs Administration stopped using the IB-47 form to request information.
As of January 1, 2022, the measure will be enshrined in law. Every employer (legally referred to as a withholding agent) is from that moment on required to submit paid amounts to third parties to the Tax and Customs Administration. Before the legislative change, this was only required if the Tax and Customs Administration asked you to do so.
What payments are exempt from the obligation?
Of course, the information obligation does not apply to payments to employees; after all, the Tax and Customs Administration is already informed of these through the payroll records. You also do not have to report your payments (or those of a withholding agent operating with you in a group context) to the following natural persons:
- Payments to volunteers (to the extent that they do not exceed the maximum volunteer compensation);
- Payments based on invoices that meet the requirements of the Sales Tax Act and show VAT;
- Payments to artists, professional athletes or members of a company who, under the terms of a treaty, are not taxed in the Netherlands.
You must report all other payments, for example the payment of invoices from freelancers who use the small entrepreneurs scheme (after all, no turnover tax is stated on these invoices).
For the aforementioned exceptions, the Tax and Customs Administration may ask you to submit an IB-47 form, even after January 1, 2022. You still do not have to do this of your own accord and you also do not have to state a BSN number.
Necessary data and timing of mandatory submission
In addition to the BSN number, you must provide the following information:
- The name, address and date of birth of the recipient of the payment;
- the amounts paid in the calendar year, including expense reimbursements.
You must inform the Tax Administration about payments to third parties in 2022 in January 2023.
That still seems a long way off. Nevertheless, it is important that you adapt your administrative processes to the regulations. In this way, you will have a clear picture of these payments as of January 1, 2022, and you will be prepared for the new obligation.
Intermediate delivery may become possible for payments in 2023 or later. In that case, a final delivery date of January 31 of the year following the payments will apply.
Want to know more?
Want to know more about your obligations? Our tax advisors will be happy to assist you. Please contact Ronald van Leeuwen, senior tax advisor, on telephone number +31134647268 or send Ronald an e-mail.