The Netherlands’ WTTA Act: What international advisors need to know
Carijn van Helvoirt-Franssen
by Carijn van Helvoirt-Franssen
The Netherlands is preparing for a significant change in how companies can deploy personnel to other organisations. With the new WTTA Act expected to take effect on 01 January 2028, both Dutch and foreign employers will need to adapt to a stricter regulatory environment. The proposed Wet toelating terbeschikkingstelling van arbeidskrachten (Provision of Personnel Admission) Act is still awaiting final approval by the Dutch senate, but companies should be preparing for the transition period in 2026 and 2027.
What is “deployment of personnel”?
Under the WTTA Act, deployment of personnel means an employer sends workers to a client company for a fee. These workers remain on the payroll of their original employer but perform their duties under the supervision and direction of the client. This is a common practice in many industries, but the new rules will introduce tighter controls and more administrative requirements.
It’s important to note that not all personnel arrangements fall under these rules. Deployments within the same group of companies, such as between a parent and subsidiary, are exempt. The law defines a group as an economic unit of legally connected entities, including certain partnerships with full liability.
Deployment vs. contracting: Know the difference
There is a key distinction in Dutch labour law between deployment and contracting. In a deployment, the worker is managed by the client and typically paid by the hour or day, with the contract ending after a set period. In contrast, a contracting agreement involves a fixed fee for a clearly defined project, with the contractor (the formal employer) supervising the work. The contract concludes after the project is completed and inspected.
However, if a contracting agreement is poorly drafted or executed, it may still be classified as deployment, so clarity in contracts is essential.
The new WTTA Act: Registration and compliance
The heart of the WTTA Act is a new registration requirement. Any company deploying workers in the Netherlands must register with the Ministry of Social Affairs and Employment (SZW). Registration is not a mere formality: companies must meet several conditions, including obtaining an inspection certificate from a licensed inspector, providing a Certificate of Conduct for Legal Entities, paying an annual fee (up to EUR 3,611), and placing a EUR 100,000 deposit to cover potential liabilities such as taxes, social security, and fines.
Registration is valid for four years and must be renewed. For first-time applicants, a pre-registration period of up to six months is possible, with a reduced deposit of EUR 50,000.
Exemptions for non-core deployers
Not every company that occasionally deploys staff will be required to register. If deployment is not a core business activity, and if the company has at least one year of payroll history, it may request an exemption. The exemption is only available if deployment turnover is less than EUR 5 million and under 10% of total turnover during the requested period. This exemption must be actively requested from the SZW, which may require audited proof that the conditions have been met.
Inspection and certification
A crucial part of the registration process is the inspection certificate. Licensed inspectors (private companies that set their own fees) will review a company’s identification, financial administration (especially wage tax and VAT), compliance with minimum wage and holiday allowance laws, and proper notification of posted workers. They will also check employee identity, registration, and work permits, as well as employment contracts and housing standards if the employer arranges accommodation.
If a company already holds a valid SNA certificate as of 30 June 2027, this can serve as the inspection certificate. Companies that want to obtain such a certificate should apply for SNA certification before 01 July 2026.
Applicability to foreign and small employers
The WTTA Act applies not only to Dutch companies but also to foreign employers deploying workers to the Netherlands. Company size is irrelevant; all deployers must comply, unless they qualify for the exemption described above.
Penalties for non-compliance
The consequences for failing to register are significant. Both the deploying employer and their client can be fined if personnel are deployed without proper registration or exemption. The maximum fine is substantial: up to EUR 103,000 per violation (2025 rates).
Final thoughts
The WTTA Act marks a major shift in Dutch labour law, aiming to increase transparency and accountability in the deployment of personnel. International advisors should ensure their clients understand these new requirements and begin preparations well in advance. For complex cases or further guidance, consulting a specialist lawyer is strongly recommended.
EJP Financial Astronauts are auditors, advisers, and challengers. Their team of 55 consists of auditors, accountants and international tax lawyers that have a wide range of expertise. Their main fields of expertise are Dutch corporate and personal income tax, international taxation, Dutch royalty, interest and dividend withholding tax, estate planning, and wage tax. They have an AFM licence to perform audits for the larger mid-sized companies.
GGI member firm EJP Financial Astronauts's-Hertogenbosch, The NetherlandsT: +31 73 850 72 80
Auditing & Accounting, Corporate Finance, Tax
Carijn van Helvoirt–Franssen completed her tax master’s degree in 2014 and has worked in the (international) tax advisory practice for over 10 years. In 2020, she joined EJP and in daily practice, she focuses on (international) tax advice, M&A for larger SME companies in the Netherlands and abroad. Contact Carijn.
