During the course of 2015 the current method of the VAR statement will be replaced by a BLG statement. A VAR statement is issued by the tax authorities to provide and provides clarity to the contracting party that the income paid to the contractor is considered self-employed income and can therefore be paid without any tax withholdings.
The BGL intends to address the issues of “false security” of a VAR statement as the VAR is issued on the basis of facts and circumstances in the future. As the facts and circumstances may differ in future, the contracting i.e. the company may still be held responsible for tax withholdings based on the BLG.