The liability for payroll taxes upon subcontracting in the Netherlands (Chain Liability)

Last updated: 08-10-2021

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:   

The Chain Liability regime in the Netherlands                                                                                        

To whom does the Chain Liability apply?

Extraordinary situations in the Chain Lability Regime

Protection against the Chain Liability

General disculpation provision

The G- account (blocked escrow account)

Our services with regard to the Chain Liability Regime

 If you are interested in our services, please feel free to contact us at our officevia e-mail or by telephone at + (31) 20 570 94 40 (Amsterdam) or + (31) 10 20 10 466 (Rotterdam).