4 ms·

I feel your frustration, but please read up on Dutch corporate taxation. Basically put, your 30€/h (I assume came from 60.000€/year salary), is factually 110,0

I feel your frustration, but please read up on Dutch corporate taxation. Basically put, your 30€/h (I assume came from 60.000€/year salary), is factually 110,000-140,000 €/year cost for your employer. It does not take into the account the financial risks you pose to the company (long time sickness, social financial obligations, ..). Second thing, the 150€/h you quote, is not going into the pocket of the freelancer. Unlike you, they’re taxed similarly to your employer, hence -21% VAT, corporate taxation, - business costs and expenses (from office rent, lawyer and accountant fees to the public transport that your employer reimburses you, simple insurances will add up to ~1-2k/month..), - social security tax and lastly the income tax. As a self employed, you are in a different pension system (read: minimal). You’d need to save that money yourself. You’re not always employed, nor paid when you’re ill, and government won’t pay you a dime if you get laid off. If you do the math right a 70k/year salary translates to a 100€/h (excl VAT) zzp position and 130-ish €/H BV construction. Yes, it seems unfair to you, but that’s a choice you can make for yourself.

ponector 1y ago
VAT is out of equation as it is goes down the flow and is actually paid by end customer only, not the business, not the contractor. Also there are multiple ways to decrease taxation, to write down expenses as cost of business, etc. To be contractor is much better, unless you don't want to do any work, just to attend the office.
- user32489318 1y ago
  The contractor is at the end of the chain, hence is the one paying the VAT. You’re right that there’re measures to reduce the tax load. At the end of the day, any company expense will also cut into the profit/ margin of the contractor. There’re various laws in place to tax anything company acquired that can be used personally. Great example is the car and real estate taxation. The largest component of the equation is the pension/retirement finances. This is tricky to get right

ponector 1y ago

VAT is out of equation as it is goes down the flow and is actually paid by end customer only, not the business, not the contractor. Also there are multiple ways to decrease taxation, to write down expenses as cost of business, etc. To be contractor is much better, unless you don't want to do any work, just to attend the office.

user32489318 1y ago
The contractor is at the end of the chain, hence is the one paying the VAT. You’re right that there’re measures to reduce the tax load. At the end of the day, any company expense will also cut into the profit/ margin of the contractor. There’re various laws in place to tax anything company acquired that can be used personally. Great example is the car and real estate taxation. The largest component of the equation is the pension/retirement finances. This is tricky to get right