Making a g-account compulsory for all temporary employment agencies is not feasible in the short term. Minister Van Hijum of Social Affairs and Employment (SZW) made this known during the plenary discussion in the Lower House of Parliament of the Bill on the Authorisation of the Posting of Workers Act (Wtta).
What is a g-account?
A g-account is a blocked bank account linked to wage tax and/or turnover tax sub-numbers. This means that the account can only be used to pay payroll taxes and VAT to the tax authorities. Temporary employment agencies, secondment agencies and subcontractors may be asked by clients to open a g account.
Why is mandatory account not possible now?
Minister Van Hijum promised MP Omtzigt (NSC) to investigate how a mandatory g-account could be introduced. At the moment, however, this is not feasible because the number of g-accounts cannot be easily scaled up. Their processing at banks and the Tax Administration is largely manual, which is an obstacle. Nevertheless, a mandatory g-account remains a wish of the government.
Feasibility study
The Ministry of Finance has appointed an explorer to work with banks, the tax authorities and the business community to investigate under what conditions and when a mandatory g-account could become possible. This will also look at any necessary adjustments to tax regulations. This study is expected to be completed in the second half of 2025.
Foreign temporary employment agencies
A key focus of the study is the position of foreign temporary employment agencies. For them, it is often difficult to open a business account and corresponding g-account. Banks are reluctant to accept foreign clients because of their gatekeeper function. An alternative solution that is as reliable as the g-account is being sought.
No law change ahead of mandatory g-account
MP Omtzigt asked whether the law can already be amended now in order to make it easier to introduce a compulsory g-account at a later date. Minister Van Hijum indicated that this is not necessary: if it is decided to make it compulsory, this can be arranged within the Wtta by amending the standards framework. Any changes to the tax regulations will only be considered after completion of the exploration process.
Other regulations: NEN certification and exoneration rule
Besides the g-account, other factors also play a role in mitigating risks for hirers:
- NEN certification
Temporary employment agencies can be certified according to NEN 4400-1 (Dutch companies) or NEN 4400-2 (foreign companies). This shows that they are financially reliable and comply with laws and regulations. NEN certification is often a condition for inclusion in the SNA register, offering extra security for clients.
- Exoneration rule
Hirers will not be held liable by the Tax Authorities if they cooperate with a certified hirer and meet certain conditions, such as:- Depositing at least 25% of the invoice amount (20% if VAT is withheld) into the hirer’s g account.
- Ensure correct and transparent administration.
- Being able to prove the identity and, if applicable, the residence permit of hired employees.
These measures try to prevent fraud and abuses in the temporary employment sector, while at the same time seeking a workable solution to the mandatory g account
Want to know more?
Get in touch with AAme’s payroll consultants. They can tell you all about changing legislation and the g-account.