A G Account, or guarantee account, is a (largely) blocked account that can only be credited. Debits from a G Account can only be made to other G Accounts and to the Dutch Tax Office

A G Account, or guarantee account, is a (largely) blocked account that can only be credited. Debits from a G Account can only be made to other G Accounts and to the Dutch Tax Office.

These special accounts are used mainly in the construction industry for work contracted to subcontractors. The Liability of Subcontractors Act on the remittance of wage taxes by subcontractors (Wet Ketenaansprakelijkheid) stipulates that the principal contractor is liable if wage taxes for employers are not paid by subcontractors. By depositing the subcontractor's wage tax obligations in a G Account, the principal contractor covers this risk, while the subcontractor can use this account to fulfill his wage tax commitments.

The Dutch Tax Office has decided, due in part to the introduction of SEPA, to switch to a custody account system, as a result of which the use of G Accounts will probably be discontinued from 1 January 2015. The Payments Association will consult with both the Tax Office and the banks on how best to implement this transition.

Meer informatie

More information on G Accounts can be found on the website of the Dutch Tax Office.

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