Tax interest changes
On January 1st the tax authority’s policy for charging and disbursing interest will change. For corporate income tax the interest rate will increase to a minimum of 8% in 2014 according to the coalition agreement between the PvdA and VVD.
Tax interest
Tax interest is charged on tax payable (as assessed by the tax office) which is overdue. Interest is accrued if the tax office takes too long in finalizing and paying a tax refund. If you pay too much tax then you will receive the overpaid amount back without interest.
Corporate income tax increase
The amount of the interest on corporate income tax will become the same as the legal interest for commercial transactions with a minimum of 8%, as opposed to the current rate of 2.25%. The tax interest rate will be the same as the statutory interest rate, which has now increased for corporate income tax due to the coalition agreement. The importance of an accurate estimation of the provisional assessment has therefore increased.
Other taxes
The amount of interest on other taxes will be the same as the statutory interest for non-commercial operations with a minimum of 4%. This means the interest percentage no longer needs to be adjusted every quarter. The interest rate for charging or accruing interest remains the same.
Start counting
From henceforth the interest will only be calculated from July 1 of the year following the tax year. Under the current interest ruling the relevant date is January 1 following the tax year.
Payroll taxes
Differences between the tax and interest rates for payroll tax from the Payroll Tax Newsletter 2013
|
Subject |
Interest to 2013 |
Interest from 2013 |
|
period over which the interest will be calculated |
periods up to and including 31-12-2011 |
periods from 1 January 2012 |
|
additional assessment (naheffingsaanslag): end date of the period over which you must pay interest (the begin date remains unchanged*) |
the date of the additional assessment |
the date by which you must have completely paid the additional assessment: the date of the additional assessment plus 14 calendar days |
|
refund for periods in a past year: received by you as interest |
payment of interest in all cases |
payment of the interest only if the date of the refund is the consequence of a procedural defect** or a time failure*** on the tax office’s part |
|
correction or refund request: begin date of the period over which you receive interest |
1 April of the year which follows the year which the correction or the refund request relates to |
8 weeks after we have received your original correction or refund request, but never earlier than 1 April of the year following the year which the correction or refund request relates to |
|
Correction or refund request: the date you receive the interest |
the date of the decision |
the date of the decision plus 14 calendar days |
|
objection to a tax assessment: begin date of the period over which you accrue interest |
1 April of the year which follows the year which the objection relates to |
the day after receipt of the payment of the tax assessment, but never earlier than 1 April of the year following the year which the objection relates to |
|
objection to an assessment: end date of the period over which you accrue interest |
the date of the decision |
the date of the decision plus 14 calendar days |
|
interest rate |
interest rate is determined every quarter |
legal interest rate for non-commercial transactions |
* The begin date of the period over which you must pay interest to the tax office for additional assessments, is unchanged: 1 January of the year following the period for which the additional assessment applies.
** In the case of a procedural defect we review the earlier standpoint through which you receive a refund.
*** In the case of a time failure we act on a request or objection too late, which is more than 8 weeks after you have submitted the request or objection.