The DBA Act and bogus self-employment: what does it mean for you?

As a freelancer, you've probably noticed: there's a lot of uncertainty in the market surrounding the DBA Act and bogus self-employment. Many freelancers are wondering: what does this mean for my way of working? Can I still operate as an entrepreneur?

The short answer: yes. Self-employment won't be made impossible. The rules will simply be clearer and more strictly enforced, making it easier to determine when you're truly self-employed and when something actually resembles an employment contract.

In this article, we'll guide you through the most important developments. What exactly is happening? What does this mean for you? And how can you maintain a strong and confident business within these frameworks?

Are you a client? Then read what the What the DBA Act means for your organization.

Why does the DBA Act actually exist?

The DBA Act (Deregulation Assessment of Employment Relationships) was introduced in 2016 to combat false self-employment: situations in which someone is a self-employed person on paper, but in practice works as an employee.

The government wants that:

• Anyone who is actually an employee should be treated and protected as such
• Anyone who is truly an entrepreneur can continue to do business freely

The Dutch Tax and Customs Administration uses various criteria to assess whether someone is self-employed. Since 2025, the Dutch Tax and Customs Administration has been fully enforcing false self-employment. Organizations that hire freelancers must be able to explain more clearly whether someone is truly self-employed. Failure to do so may result in fines and additional assessments.

Please note: a new law is being prepared to replace the DBA Act. The entry into force of VBAR Act (Clarification of the Assessment of Employment Relationships and Legal Presumption) has been provisionally set for July 1, 2026. The rules may therefore change further in the future.

What is false self-employment?

False self-employment means you're an entrepreneur on paper, but your work, position, and management resemble those of an employee. Think: fixed working hours, integrated into a team, a lot of guidance, and little entrepreneurial spirit.

In short: it's not about what's on paper, but what happens in practice.

How does the Tax Authorities assess this?

The assessment is partly based on various criteria from the Deliveroo ruling:

1. Content and duration of the assignment

Is the assignment suitable for an independent expert? The work must be unique, specialized, and project-based. Examples:

• Independently delivering a Q3 analysis and an accompanying communications plan.
• Set up, design and send 10 newsletters within three months.

2. Freedom in working methods and times

A self-employed person determines their own location and working hours. The more control a client has, the greater the risk of false self-employment.

3. Embedding in the organization

Are you part of the team or do you support the team from outside? Characteristics of embeddedness (and therefore the risk of false self-employment):

• You are part of the internal organization
• Activities that strongly affect the core of the organization and have little autonomy in their implementation

Characteristics of independence:

• A loose, defined assignment
• Freedom in methods, planning and approach
• No bills or performance reviews
• You can also work for other clients

4. Management and supervision

This is one of the most important criteria. Self-employed:

• Are hired for specific knowledge
• Didn't receive any instructions on how to do something
• Determine their own planning
• Are judged on results, not attendance

The client can dictate the desired outcome; that's what you're hired to do, not how you achieve it. However, coordination regarding the status of the assignment can take place.

5. Personal obligation

Are you allowed to outsource the work, or are you required to do it personally? If you're required to do the work yourself, this increases the risk of false self-employment.

6. Method of rewarding

Self-employed workers are paid for output or hours worked to achieve a result. Do you receive continued pay during illness or leave? In that case, it's more like salaried employment and therefore bogus self-employment.

7. Rates

Freelancers' rates are higher than those of regular employees. In return, they face greater financial risks than permanent employees. The proposed lower limit of €35 per hour is not a problem in our sector: experienced communications professionals earn well above that.

8. Entrepreneurship

You present and behave as entrepreneurs when you:

• Registered with the Chamber of Commerce
• You are not dependent on 1 client for your turnover
• Entrepreneurial risk runs
• Determine your own hours
• You present as an entrepreneur and not as an employee of the client

Examples: what is allowed and what is not?

Maternity cover (peak and sick)

✕ Not suitable if the work is taken over one-on-one, in a team, under the direction of a manager, and with little independence.

✓ This is possible if the organization sets a clear performance target: what needs to be delivered within that period, by a specialist who carries this out independently.

Effort vs. results

✕ Obligation to make an effort (“you are here from 9 to 5 and you work the way we do”): characteristics of paid employment.

✓ Result obligation (“this is the assignment, this is the end product, do it your way”): suits the self-employed.

Junior vs. Strategic

✕ Juniors require a lot of guidance, clear instructions, and limited autonomy. Therefore, they are rarely suitable for independent roles.

✓ Strategic or specialist roles often suit independence, because expertise is leading and implementation takes place independently.

What are the risks?

Since 2025, the Dutch Tax and Customs Administration has been actively monitoring clients (the hiring organization or the agency that handled the placement) for bogus self-employment. If bogus self-employment is found, the Dutch Tax and Customs Administration reclaims levies and premiums (wage tax, employer contributions, employee insurance schemes such as unemployment benefits (WW) and disability benefits (WIA)). This can be a significant financial burden.

If you are found to be self-employed, you can:

• lose VAT benefits
• lose self-employed persons deduction
• losing the starter's deduction
• losing your SME profit exemption
• missing out on investment deductions

What do we do?

At Babbage, we actively review every freelance assignment. We do this together with you and the client. We use a DBA Act checklist to ensure an assignment fits within the framework.

Increasingly, clients decide for themselves whether a project can be done through freelance. If not, we'll discuss the matter and find a solution. Sometimes this involves adjusting the project, sometimes it involves choosing a different structure.

Important: “essence comes before appearance.”

Practical experience is key, and assignments sometimes change during the term. Therefore, we ask you to clearly document your assignment (result) and how you will work in practice with your clients (management and supervision).

What if the assignment cannot be done through freelance?

Sometimes a project simply can't be filled as a freelancer. In that case, we'll explore alternatives together, such as:

• a (temporary) employment contract via Babbage
• inflow at the client
• a customized assignment structure

And a frequently asked question: is working through a private limited company (BV) a solution? No. It's about the actual situation, not the legal structure. The Tax and Customs Administration looks at behavior, management, and integration. So, even through a BV, you can be considered self-employed.

Do you have any questions about your situation? Yke Hoekstra We'd be happy to discuss your situation, your assignment, and your job description with you. We'd also be happy to work with your client, if needed.

Want to learn more? Check out:

• Tax Authorities – When is there employment?
• Tax Authorities – Employment relations: self-employed – yes or no?
• Central government – The right contract: self-employed, yes or no?
• Chamber of Commerce – DBA Act: prevent false self-employment

Disclaimer: The information on this page has been carefully compiled based on the laws and regulations applicable on the publication date of December 29, 2025. Use of the information on this page is strictly at the user's own risk and responsibility. No legal rights can be derived from its use. Babbage Company BV accepts no liability for errors or omissions on this page. Should a user suffer any damage as a result of using the content of this page, Babbage Company BV will not accept that damage. Babbage Company BV will never conclude that there is no case of false self-employment. Only the Tax Authorities or a competent court can draw that conclusion.