Tax issues when Opting-in is applicable to you as a sex worker
What does the Tax and Customs Administration understand as structural conditionality?
When structural conditionality is applicable to you then you work for the owner, but you are not an employee for tax purposes (this is also applicable to the Employee Insurance Agency responsible for social security benefits).
The owner of the sex business has concluded an agreement with the Tax and Customs Administration, whereby the owner withholds tax and social security charges from your wages and pays these to the relevant agencies. This means that you don't need to make these payments yourself.
Talk to the owner about the situation at the business where you work: employment or structural conditionality.
You must file an annual income tax return.
All your income is totalled in the income tax return, although the return also takes account of your specific situation.
When structural conditionality is applicable to all your work then you do not need to register as a self-employed person with the Chamber of Commerce.
The owner must meet all the agreed conditions. Check that the owner does so.
If the owner does not fulfil the conditions, for example because the owner decides on your working hours and the clothes you must wear, then you are an employee. You, like all other employees, are then entitled to at least the minimum wage and a holiday allowance.
More information is available under ‘Your rights and obligations’ as an employee.
Tax, what does that mean for me when structural conditionality is applicable to me?
Everyone who works in the Netherlands pays tax. The owner registers you with the Tax and Customs Administration.
You will then need to make a number of important arrangements:
You will need a Citizen Service Number/tax and social insurance number (sofinummer). You can request this from the Municipality.
The owner will give you two forms: the Verklaring Loonheffen Opting-in ('Payroll tax Opting-in declaration') and the Overzicht Loonheffingen en privacy('Payroll tax statement and privacy declaration'). Complete both these forms: the owner or a member of the Tax and Customs Administration can help you if necessary.
Show the owner your original proof of identity and give the owner a copy.
Reach agreement with the owner on your income from your regular duties and from additional services you provide. The owner begins by deducting VAT from all the clients' payments and divides the remainder with you.
The owner must give you a statement for each of the owner's payments which states your gross salary and the amount of tax that has been deducted.
Keep these statements!
The owner also gives you an annual statement for the past year at the beginning of each year. You must also keep this statement. You will need this statement when you need to complete an income tax return.
The Tax and Customs Administration and the owner are under an obligation to maintain confidentiality: they must treat your information confidentially.
The only information they need from you is:
- your Citizen Service Number/tax and social insurance number (sofinummer)
- your initials, surname prefix where relevant and surname
- your date of birth
- the date on which you began work
- your wage and the period in which you earned the wage
More information about structural conditionality, tax, the calculation of tax is available from the Tax and Customs Administration or call: 0800 – 0543.
The Tax and Customs Administration can also help you with the completion of your forms.
You can apply for your Citizen Service Number/tax and social insurance number (sofinummer) at your Municipality.