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New Obligation To Register Manpower
The Obligation to Register Intermediaries Act has come into effect as of 1 July 2012. This means that all companies operating in The Netherlands have an obligation to register their supply of manpower. Taxand Netherlands explains the rules of the new Act and what the consequences are for corporations who fail to comply.
Following implementation on 1 July 2012, the Obligation to Register Intermediaries Act means that all corporations who supply or hire manpower must register at the Dutch Chamber of Commerce.
This new law is of great importance to temporary employment and secondment agencies, as well as companies who supply or hire one or more workers on an ad hoc basis.
Failure to register will result in high fines. Both the company supplying workers and the hirers risk a fine of a maximum of EUR76,000 for the first, EUR152,000 for the second and EUR228,000 for the third violation of the registration obligation per worker.
This law will have an effect on all multinationals who have operations in The Netherlands, making it more difficult to hire staff on an ad hoc basis. The law has the potential to distract investors from the more positive tax allowances the Dutch marketplace has to offer.