Enforcement by Tax Authorities could have impact on self-employed professionals

Effective from 1 January 2025 the Tax Authorities intend to start again with enforcing the employment relationship between recipient companies and self-employed professionals. Most publications highlight the impact on the recipient companies (additional tax assessment payroll tax, income tax and contributions).
But a requalification to employee will impact self-employed professionals too, in terms of income tax and turnover tax.

Income tax
Profits from business activities will be qualified as income from employment. This means no entitlement to entrepreneur facilities; these include investment credit, entrepreneurs allowance and the SME profit exemption. Most of the costs incurred can no longer be deducted.

Turnover tax
Retroactively, the requalification could also have consequences for the turnover tax. Still, any turnover tax charged will still be payable.