Deferral of tax payments

Deferral of tax payments for entrepreneurs & reduction of tax interest

Last updated: October 5th, 2020

As of 1 October 2020 it is no longer possible to file for a request for special deferral of payments for taxation. If an entrepreneur filed for a deferral of payment for a period of three months before 1 October 2020, it is possible to file for an extension of the deferral up to 31 December 2020.

If an entrepreneur did receive deferral of taxation he will receive a proposal from the Dutch Tax Authorities considering a payment arrangement in the spring of 2021. Starting 1 July 2021 the outstanding tax debt will have to be repaid according to a 36-month payment plan. Earlier repayment is possible.

Recovery interest
If you do not pay an assessment on time, you normally have to pay 4% recovery interest from the moment the payment term has expired. As of March 23, 2020, the tax authorities will temporarily reduce the recovery interest from 4% to 0.01%. This applies not only to a tax debt for which special deferral of payment is requested, but to all tax debts. The recovery interest is reduced until at least 31 December 2021.

Tax interest
The tax authorities charge tax interest if they were not able to determine a tax assessment on time, for example because a tax return was filed too late or not for the correct amount. Normally, the tax interest is 8% for corporate tax and 4% for other taxes.

The tax authorities have temporarily reduced the tax interest to 0.01%. This applied to all taxes subject to tax interest. The temporary reduction of the tax interest was in effect from 1 June 2020 up to 1 October 2020, except for personal income tax. For personal income tax, the reduction was in effect from 1 July 2020 up to 1 October 2020.

As of 1 October 2020 the tax interest is 4% for all taxes.

Source: Online application for deferral of payment (Dutch only) | Tax interest (Dutch only) | Publication date: March 29th, 2020

Do you expect a lower profit due to the corona outbreak? And do you now pay a provisional assessment for income tax or corporate tax? Then you can change your provisional assessment so that you immediately pay less tax. Reduce your estimated income for this.

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