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If you wish to have your partner work in your business, there are three main forms: as an employee (with an employment contract and payroll taxes), as a co-owner, or as a voluntarily contributing partner with limited remuneration (and potentially the co-working deduction). Each form has its own tax, social, and liability implications, so seek advice beforehand.
A collaborating partner is often welcome help, and there are various ways to arrange this. We list them below.
1. The partner as an employee
You can enter into an employment contract with your partner in various forms — for example, a minimum-maximum contract or a zero-hours contract. Your partner will then receive the same rights as other staff, and you will withhold payroll taxes. If you do not yet have any staff, your partner can still start working as an employee, but you must then register with the Tax and Customs Administration as a new employer.
2. The partner as co-owner
Your partner can become a co-owner. This is easiest with a general partnership (VOF) or private limited company (BV), as no change of legal form is required; in the case of a BV, the partner can even become a co-director-major shareholder. You notify the Tax and Customs Administration of the change and, in the case of a BV, have it recorded by a notary. For other legal forms, you must first change the legal form — pay attention to the consequences for your liability and social security, which vary by legal form.
3. The voluntarily assisting partner and the co-working deduction
Your partner can also contribute voluntarily, without an employment contract or co-ownership. This does not have to be entirely free: you may provide limited remuneration, which must be proportionate to the work. Payment can be made in various ways, for example via an acknowledgment of debt or bank transfer.
If you pay your partner less than a certain threshold (in the original, 5,000 euros per year), that remuneration is not deductible from the profit, but you can use the co-working deduction under certain conditions. To qualify for this, your tax partner must work at least a certain number of hours (in the original, 525 hours) in the business; the deduction depends on the hours worked and amounts to a percentage of the profit. If you pay at least that threshold, it is income for your partner, on which he pays income tax and social security contributions.
Frequently Asked Questions
How can my partner work in my business?
As an employee (with an employment contract), as a co-owner, or as a voluntarily contributing partner with limited remuneration and possibly the co-working deduction.
What is the co-working deduction?
A tax deduction for entrepreneurs whose partner works without an employment contract, provided that conditions (such as a minimum number of hours) are met. The amount depends on the hours worked. Check the current amounts.
Which shape is best?
That depends on your situation: the choice has tax, social security, and liability implications. Therefore, seek advice on a case-by-case basis.
Advice regarding the collaborating partner
The legal experts at MKB Juristen help you choose the right structure and draft the documents. View our expertise in corporate law or schedule an intake meeting .
