From 1 January 2024, the tax interest calculated on a (provisional) corporation tax assessment is 10%. In 2023, this was also high at 8%.
For most other taxes, such as income tax, inheritance tax and transfer tax, tax interest will be charged at 7.5%. from 1 January 2024 (6% in 2023).
When do you owe tax interest?
If you receive a (provisional) assessment with a payable amount, tax interest may be due on it. This is the case if the (provisional assessment) is imposed after the expiry of six months after the end of the relevant tax year. Specifically, for a year ended 31 December 2023, this means that tax interest is payable on the period from 1 July 2024.
How can you reduce/avoid tax interest for the 2023 financial year?
You can reduce or avoid tax interest. In fact, no tax interest will be charged if you:
- Requests a provisional income tax assessment or corporate income tax 2023 by May 1, 2024;
- Submit corporate income tax return 2023 by 1 June 2024;
- File the 2023 income tax return by May 1, 2024 of the relevant year.
Want to know more about tax interest?
If you have any questions, you can of course get in touch with your contact person within VWG.