Entrepreneurs, who are liable to withholding tax on wages, must before 1 February 2024 declare amounts paid by them to third parties in 2023.
Bodies that are not liable to withholding tax for payroll tax purposes should make the declaration only when invited to do so by the Tax Administration.
You can find this commitment in Section 22a of the Income Tax Implementing Decree 2001.
Who are third parties?
That is anyone to whom the company or body has made one or more payments (in cash or in kind) that:
- is not in (fictitious) employment with the entrepreneur or body (which is not included in payroll tax returns) or;
- issues an invoice without VAT (the invoice states 0% VAT, €0 VAT or no VAT at all, for example because of exempt supplies or the application of the reverse charge mechanism).
What data?
The Statement of Data Paid to Third Parties (UBD) to be submitted by 1 February 2024 must contain the following information:
- The (total) amount paid out in 2023;
- the date on which payment was made;
- name, address, date of birth and BSN of the person to whom payment has been made.
Sanction
Failure to comply with the obligation to declare amounts paid out to third parties can result in a 3rd category fine: up to €9,000.
You can find this sanction in Section 68(1) of the General Act on State Taxes.
Exceptions
The UBD Statement need not be made (among other things) for:
- allowances paid pursuant to the volunteer scheme;
- payments to artists and professional athletes under the artist and professional athletes scheme.