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Low Trust Raises Business Friction

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  • Low Trust Raises Business Friction
  • May 13, 2026 by
    Paolo Maria Pavan


    What is the situation?

    CBS reported trust in Dutch politicians at 21% and in the Tweede Kamer at 25% in the fourth quarter of 2022. While this is not a current 2026 measurement, it remains a significant indicator. Institutional confidence can erode more rapidly than the underlying administrative structures.

    For micro businesses, small employers, and self-employed professionals, the primary concern is not institutional breakdown. Instead, uncertainty has increased regarding tax rules, employment classification, permits, subsidies, and enforcement priorities. The main area of pressure is the gap between shifting policy and the continued operation of administrative processes.

    Analysis

    Small businesses typically have limited financial and operational buffers. As a result, they experience the effects of policy instability earlier than larger companies, particularly in areas such as cash flow, contract exposure, payroll decisions, and documentation requirements.

    The self-employed deduction falls from €2,470 in 2025 to €1,200 in 2026 and €900 in 2027. The MKB-winstvrijstelling, the SME profit exemption, is 12.7% in 2025 and 2026, down from 13.31% in 2024.

    A persistent assumption is that the historical predictability of the Dutch system will continue to safeguard future business models. This expectation may no longer be reliable.

    Reach out to Altroverso today to navigate the complexities of Dutch business regulations with clarity and confidence.

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    Impact

    H1

    Operational processes are likely to encounter increased friction, including slower permit issuance, stricter subsidy verification, more frequent documentation requests, and reduced tolerance for incomplete files. From 2025, the Belastingdienst will resume standard enforcement practices regarding false self-employment, with direct corrections and payroll tax assessments becoming possible.

    H2

    Planning horizons should be reviewed in light of increased policy variability. Financial commitments based on assumptions of stable tax treatment for contracts, self-employed rates, or new hires may require reassessment. Margin calculations should exclude incentives, incorporate buffers for regulatory risk, and ensure sufficient liquidity to manage potential delays in decisions or payments.

    H3

    Administrative processes should be strengthened, with particular attention to the defensibility of contracts and the reduction of reliance on individual rulings, subsidies, or permits. Where possible, compliance with EU-level programs may offer greater stability than reliance on national incentives.

    Daily operational takeaway

    A prompt review of the primary regulatory dependencies is recommended. For each, it is necessary to determine whether rules have changed, reforms are pending, documentation is insufficient, or there is exposure to cash-flow delays.

    The data, sourcing, and analysis behind this article were conducted by Paolo Maria Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by the author before publication. Any translated versions are AI-generated from the original English text.

    in MARKET
    # Paolo Maria Pavan TODAY'S MARKET PULSE
    Paolo Maria Pavan May 13, 2026
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