The Domestic Services Scheme explained
What the Domestic Services Scheme means when you hire a cleaner.
What is the Domestic Services Scheme?
The Regeling Dienstverlening aan Huis (Domestic Services Scheme) is a Dutch arrangement for individuals who hire someone for work in and around the home, such as cleaning, childcare or garden maintenance. If that person works for you fewer than four days a week, you don't have to act as a regular employer: no withholding and remitting of payroll tax, no pension contributions, and no registration with the Belastingdienst (Dutch Tax Administration) as an employer.
Who is responsible for the tax?
The scheme releases you, as the client, from employer obligations, but not from all responsibility: the cleaner themselves still has to declare the income in their income tax return. The scheme makes hiring simpler, but doesn't mean no tax needs to be paid.
The difference with undeclared ('black') work
Undeclared ('black') work means income isn't declared to the Belastingdienst at all, regardless of how many days someone works. That remains illegal either way, with or without the Domestic Services Scheme. The scheme itself is specifically meant to make it easy to hire someone legally, without the full administration of a formal employment relationship.
How this works on Matiwala
Most cleaners on Matiwala work as independent contractors (zzp'ers) with their own KVK (Chamber of Commerce) registration. In that case you're not hiring an employee, and the Domestic Services Scheme doesn't even apply: you simply pay an invoice, just as with any other independent business owner, and the administration and tax filing are entirely the contractor's own responsibility.
Want to know more
This article provides general information, not personal tax advice. For the current rules and your specific situation, the Belastingdienst (belastingdienst.nl) is the official source.
Frequently asked questions
Do I need to withhold payroll tax if I hire a cleaner?
If the cleaner works as an independent contractor with their own KVK registration, you pay an invoice and there's no payroll tax involved. If someone works for you in an actual employment relationship and fewer than four days a week, that may fall under the Domestic Services Scheme, under which you also don't need to withhold payroll tax.
Is paying a cleaner in cash the same as undeclared work?
No. The payment method - cash or bank transfer - isn't what matters; what matters is whether the income is declared to the Belastingdienst. Paying someone in cash who properly declares the income is legal.
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