Withholding agent certificate
A withholding agent certificate provides clarity about who is responsible for the payment of wage tax and national insurance contributions when paying the fee/performance fee to artists.
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Who is allowed to pay a salary?
An organisation or person may pay a salary if they have a withholding agent certificate (inhoudingsplichtigenverklaring, IPV) from the Dutch Tax and Customs Administration. A payrolling bureau has that. A booking agency or theatre agency also has that sometimes. If you collaborate with others in a general partnership (vennootschap onder firma, vof), professional partnership (maatschap), foundation (stichting) or association (vereniging), this legal form may also apply for a withholding agent certificate. The legal entity will be the employer in that case, must keep payroll records and can pay the income. If you have a band or a company/group, for example, and your income falls under the artist scheme, you can also agree that one of the members applies for a withholding agent certificate. All members can therefore be paid by this person with the aid of the total fee statement form. You apply for a withholding agent certificate from the Dutch Tax and Customs Administration.
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Do you have a withholding agent certificate yourself?
When you have a withholding agent certificate yourself, you release the client from the obligation to withhold wage tax and national insurance contributions from the fee. This is now your obligation and you must keep payroll records. There are also intermediaries, such as bookkeepers who can keep these payroll records for you.
If you send an invoice to the client, you must be able to show the withholding agent certificate. If you do not do this, the client can decide not to pay your invoice, as the client may receive an additional tax assessment (plus fine) from the Dutch Tax and Customs Administration in this case, because they are responsible in the first instance for the payment and payroll records.