Financial liability and criminal liability

As an employer, you are obliged to register your employees in the employee register and to deduct withholding tax and garnishments and pay these amounts to the tax authorities.

If you fail to fulfil these obligations, you will be financially liable for the amounts that would otherwise have been deducted from the employee's salary, unless you're able to substantiate that the failure was not due to an oversight or negligence on your part.

As an employer, you may be fined or sentenced to imprisonment for up to two years if you do not make the deductions in accordance with the regulations.