Do you own a company in the Netherlands and are you unable to pay your staff's wages? Or do you have problems paying taxes and contributions? Then your company is said to be in a state of permanent insolvency. You must inform the Dutch Tax and Customs Administration (Belastingdienst). In these cases, the Dutch Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV) can take over part of your wage payments.
Types of insolvency
There are 4 types of insolvency:
- You have filed for (and been granted) suspension of payment.
- You have been declared bankrupt by the court.
- You have been granted a debt restructuring arrangement.
- There is no court ruling yet, but you cannot pay you staff’s wages and creditors (people or companies that still need to get paid). And you are unlikely to be able to do so in the future.
Reporting insolvency to Tax and Customs Administration
Did you miss payment of taxes and contributions because you are unable to pay? You must report your insolvency to the Dutch Tax and Customs Administration (Belastingdienst, in Dutch) within 2 weeks of missing the payment. If you do not report your insolvency, you can be held personally liable.
Insolvency and directors' and officers' liability
If you are a director or officer of a public (nv) or private limited company (bv) that is no longer able to pay certain taxes, or employee or pension contributions, you should report this immediately to the Dutch Tax and Customs Administration (in Dutch), the Employee Insurance Agency (UWV), or your pension fund. If you fail to do so, you may be held personally liable, and your private assets may be seized.
Wages paid by UWV
Has your company petitioned for bankruptcy, is it being managed by an official receiver, or has it requested permanent insolvency from a court of law? Part of your payment obligations can be transferred to UWV. This applies to wages due or wages regarding your staff's notice period. In the case of insolvency your employees can apply for unemployment benefit. For them to do so, you first need to apply for a dismissal permit from UWV (in Dutch). If you have been declared bankrupt or are in a (statutory) debt restructuring arrangement you do not need to apply for a dismissal permit.