The Chain Liability regime for payroll taxes upon subcontracting in The Netherlands
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In case a Dutch contractor outsources work to a sub-contractor, under certain circumstances he can be held liable for the Dutch salary taxes due by this sub-contractor. This is referred to as the Chain Liability regime in the Netherlands (ketenaansprakelijkheid).
In case a Dutch contractor outsources work to a sub-contractor, he can - under certain circumstances - be held liable for the Dutch salary taxes due by this sub-contractor (Chain Liability). A similar liability can occur for Dutch companies which hire personnel from a third party, like an employment agency, payrolling company or just any company that provides personnel to work under the supervision and responsibility of another party (the hirer). For further details please consult our publication about the Hirer’s Liability.
In this publication only the main features of the Chain Liability will be explained. The following topics are relevant in this respect:
Frederieke den Hartog
Director/ Senior Consultant - Payroll & Expat Practice
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