The increase in the tax rate for corporation tax with effect from 1 March this year (from 8% to 10.5%) was subsequently reversed (Corporate tax interest rates will not be increased after all). That will not happen with the increase in the interest rate for the other taxes.
Yes to Benefits
This is evident from a Chamber letter from the State Secretary for Finance – Benefits and Customs, Aukje de Vries. In this letter, she states that the increase in the tax interest rate, with effect from 1 July 2023, from 4% to 6%, will not apply to interest due on benefit recoveries.
Income tax
Tax interest is payable if an income tax assessment, showing an amount due, is issued on or after 1 July of the year following the year to which the assessment relates. For example, in the case of income tax assessments for 2021, which are currently being issued, tax interest is calculated from 1 July 2022. The rate of 4% will apply for the period from 1 July 2022 to 30 June 2023 inclusive. And for the period from 1 July 2023 onwards: 6%.
There are two ways to prevent the Tax and Customs Administration from charging you tax interest, namely by, before 1 May of the year following the year to which the tax return relates:
- to submit your tax return (and to ensure that the tax authorities do not have to make any adjustments to it);
- to ask the Tax and Customs Administration to issue you with a provisional assessment for an amount such that you no longer have to pay any further tax.
If you are due an income tax refund from the tax authorities, tax interest is not paid in virtually any circumstances.
Interest on arrears
If you pay your tax late, the Tax and Customs Administration will charge collection interest. The rate of collection interest is:
| up to and including 30 June 2022 | 0,01% |
| from 1 July 2022 to 31 December 2022 inclusive | 1% |
| from 1 January 2023 to 30 June 2023 inclusive | 2% |
| from 1 July 2023 to 31 December 2023 inclusive | 3% |
| with effect from 1 January 2024 | 4% |