More extensive withholding obligation for tax and social security debts from 2026
December 2025 - The fight against tax and social security fraud remains high on the government's agenda. One of the instruments that has been used for this purpose for many years is the withholding obligation for tax and social security debts. Significant changes are to be expected from 2026 onwards.
The withholding obligation requires clients to check whether their contractors and subcontractors have tax or social security debts and, if so, to transfer part of the invoice to the government. Until now, this system has mainly applied to sectors such as construction, cleaning, security and meat processing, but from 2026 onwards, there will be further changes. The scheme will not only be broader, but also stricter, and will now also affect self-employed contractors. For many SMEs, this means extra administration, but certainly not an insurmountable burden.
What exactly does the withholding obligation entail?
When you engage a contractor or subcontractor today, you must check whether that party has any outstanding tax or social security debts before making payment. The check is carried out using an online tool that allows you to easily verify whether a deduction is mandatory. If there are debts, you must deduct part of the invoice amount (excluding VAT) and transfer it directly to the competent authority. If you fail to do so, you may be held liable as the client for the contractor's debts, especially if they go bankrupt.
The deduction percentages are fixed: 15% for tax debts, 35% for social security debts, and a maximum of 50% when both apply.
New from 2026: self-employed persons are also covered by the scheme
The most important change is that from now on, not only companies but also self-employed contractors and subcontractors will be subject to the withholding obligation. So if you work with a self-employed plumber, technician, architect, gardener, graphic designer or other self-employed service provider, from 2026 onwards you will have to check whether that person has any outstanding social security contributions.
If this is the case, you must withhold 15% of the invoice and transfer it to the social insurance system for self-employed persons. This obligation only applies if the self-employed person has more than €2,500 in unpaid contributions, but it does require consistent checks with every payment.
Situations in which no deduction is required
The extension does not mean that every payment automatically becomes more complex. In a number of situations, there is no deduction obligation:
· when the client is a private individual
· when the invoice is still within the payment term
· when there is a correct instalment plan in place with the social insurance fund
· when a deduction has already been applied for the same debts
For many SMEs, this mainly involves introducing a fixed routine: checking before each payment to avoid risks.
What does this mean for your business?
Although at first glance the extension seems to create extra administrative work, this does not have to be a heavy burden if you establish a clear working method in good time. Three points stand out:
1. Make checking standard practice: as an entrepreneur, always carry out a withholding tax check before payment, regardless of the contractor or sector.
2. Keep the evidence: you can easily save the downloadable certificate from the tool digitally with the invoice. This will serve as strong evidence in the event of an audit.
3. Communicate with subcontractors: by being clear about the obligations in advance, you avoid misunderstandings and payment delays.
