On 9 February, we reported on the increase in the tax interest rate, effective from 1 March 2023, from 8% to 10.5% (Tax interest rate: 10.5%). This increase will not go ahead.
In a letter State Secretary for Finance Van Rij has informed the House of Representatives that he has instructed the Tax and Customs Administration to continue applying the rate of 8% when calculating tax interest in relation to corporation tax (Vpb) from 1 March 2023. Furthermore, the underlying legislation will be amended accordingly as soon as possible, with effect from 1 March 2023.
In the (few) situations in which the Tax and Customs Administration is required to reimburse tax interest, the rate of 10.5% will, of course, apply until such time as the underlying regulations have been amended. As it is not technically possible within the system to apply different rates to tax interest paid in advance and tax interest received, the tax interest on the assessment will be reimbursed at the rate of 8% and the Tax and Customs Administration will pay an additional 2.5%. This additional payment will be made after the amendment to the underlying legislation has come into force. Taxpayers do not need to take any action in this regard.