A G-account is used between contractors or companies that hire out or on-lend staff in the Netherlands. The G-account can guarantee that the payroll taxes / social security premiums are paid and protect you from liability claims.

What is a G-account

When you are a subcontractor or hire out or on-lend staff in or to the Netherlands, for example as temp agency, your client may ask you to open a G-account. A G-account is a blocked bank account based upon a three-party agreement between your company, a specific bank and the Dutch tax authorities (‘DTA’). The use of a G-account is not compulsory.
The G-account can solely be used to pay Dutch payroll taxes / social security premiums and/or VAT to the Dutch Tax Authorities, or to a G-account of another company, i.e. a subcontractor that you are using.

Why would you need a G-account

In case you do not pay your Dutch payroll taxes (and/or VAT in specific cases), your client, often the contractor or subcontractor that uses your services, can be held liable for the unpaid amounts, but this liability is reduced with their payments to your G-account, provided the payments can be properly connected to your invoice. Vice versa, if you pay to a G-account of your subcontractor or temp agency, your potential Dutch tax liability is reduced with the amounts you have properly remitted on their G-account.

Setting up a G-account

To open a G-account, you will need permission from the DTA and your bank. The first step for getting a G-account is to open a bank account at a bank that offers G-accounts, please see the table of banks below. Only after the regular bank account is set up a G-account can be opened.

G-account payment service providers (updated as per January 3rd 2024)


If the bank account is opened the application form ‘Aanvraag G-rekening’, available on the website of the DTA (only in Dutch), can be sent to the DTA.

If the DTA grant permission to open a G-account, they will send three copies of the G-account agreement. These copies must be signed by a representative of your company and must be send to the bank where you want to open a G-account. After your bank has agreed, they will take care of the further

completion and signing of the three copies of the agreement. You will receive a copy of this. The bank will send a copy to the DTA. You will receive a confirmation from the DTA.

Using the G-account

Your client remits a pre-agreed percentage of the labor part of your invoice into your G-account. In general this is roughly 30% - 35% in case your staff is subject to Dutch payroll taxes and socially insured in the Netherlands. The percentage is negotiable but the idea is that the on the G-account deposited amount is close to the actual Dutch payroll taxes / social security premiums. In case the staff is not subject to the Dutch social security system (for example, they are in the Netherlands on an A1 statement), the percentage is less. Since in the construction sector a mandatory VAT reverse charge scheme normally applies, we will not include a percentage for VAT liability. For temp agencies, this mandatory VAT reverse charge scheme does not apply, so the percentage may be different in that case.  

Methods of determining the labor component

  1. A (fixed) percentage of invoice amounts based on estimates made at the time of entering into the contracting agreement.
  2. A percentage of the labor cost component of the work actually billed.

The first method is the simplest. However, the second method allows for a more reliable determination of the amount of payroll taxes owed by the subcontractor. Indeed, by assuming the actual invoice amounts, the tax and premium amounts can be more accurately determined from man-days records. Especially when a lot of overtime has taken place, the second method is more exact.

An analysis of a number of contracts by Bouwend Nederland (a branch organization) resulted in a number of indicative percentages of the labor component of the invoices, see below. The percentage is an indication of the labor cost component of the subcontract. Please note that the percentages were set in 2011 and could be different by now.

Concrete remediation companies               90%
Central heating installers                            50%
Roofing contractors                                     50%
Electrical installers                                      75%
Groundworkers                                           33%
Gardening companies                                90%
Plumbing companies                                  50%
Masonry companies                                   90%
Renovation companies                               50%
Sewer unblocking companies                    90%
Painting companies                                    70%
Cleaning companies                                   90%
Demolition companies                                50%
Steel construction companies                    50%
Paving companies                                      90%
Plastering companies                                 90%
Tiler companies                                          55%
Carpenter companies                                 55%
Braiding companies                                    45%
Flooring companies                                    80%
Flooring contractors                                    90%

Please note that if a temp agency is registered in the ‘SNA’ register (‘Stichting Normering Arbeid’) and has a NEN 4400-1 or 4400-2 registration, a fixed percentage of 25% of the invoice amounts applies (20% when a VAT reverse charge scheme applies), provided certain administrative conditions are met.

Conditions for indemnification of the liability

For the indemnification of the liability risk by the use of the  G-account the following conditions must be met:

  • The invoice of the subcontractor meets all the invoice requirements as stated in the Dutch VAT Act.
  • The invoice contains information about the agreement the (sub)contractor is sending the invoice for, as well as the period covered by the invoice and a description of the work.
  • There needs to be documentation of the hours worked by the employees (‘manurenadministratie’).
  • The invoice number is mentioned in the payment to the G-account.

De-blocking a G-account

It can happen that your client remits more to the G-account than your payroll tax / social security liability. This is adverse for your liquidity position and therefore you can file a request with the DTA for releasing the overpaid amount(s). This can be effected via a specific form. Please note that processing of this application takes time and if the DTA see reason for this, they can perform a limited payroll tax audit.

Contact us

Should you have any comments or questions, or if you require our assistance with assessing the G-account feel free to contact us at any time.