Termination of the WKA depot, open a G-account

As of 1 January 2016, the WKA depot (Sequential Liability Law) has been terminated. Starting this year it is no longer possible for contractors or user companies to directly transfer payments owed to the user company or subcontractor to the Dutch Tax Authority.

Sequential liability

When you act as a contractor or user company of personnel you can be held accountable for Dutch wage taxes owed by the lenders or subcontractors. When the lenders or subcontractors have not paid the Dutch wage taxes, the Dutch Tax Authority can hold you accountable for the wage taxes owed. This is what we call sequential liability. In the past, it was possible to lower the liability for the wage taxes owed by the lender or subcontractor by paying a part of the amount owed to the Dutch Tax Authority directly into the so-called WKA depot. As of 1 January 2016, the WKA depot has been terminated and you can no longer use this tool to lower your liability for the wage taxes owed by the lender or subcontractor. Also for lenders and subcontractors, this tool for providing a guarantee to your clients will disappear.

G-account limits liability

As a contractor, you can lower the liability for the wage taxes owed by the lender or subcontractor by depositing a part of the payment directly into the lender or subcontractor’s G-account. The liability for the wage taxes owed by the lender or subcontractor is then lowered with the amount deposited on the G-account.

Accurate personnel administration

In addition, we also advise you as a user company or contractor to maintain an accurate administration of the user company or subcontractor’s personnel used. By maintaining an accurate administration, you can prevent being held liable for the wage taxes owed that are not directly attributed to the personnel made available to you by the user company or subcontractor.

Questions

If you have any questions about opening up a G-account or you need assistance with your administration in order to limit liability for yourself, your user company or your contractor, please contact the International Tax Law Group. For more information, send an e-mail to international@acconavm.nl or complete the contact information form. We will then contact you directly.