Dutch tax interest rates have been raised

Using the provisional assessment scheme? Action required before May 1 

Recently, there have been adjustments to Dutch tax interest rates, which carry significant implications for both businesses and individuals utilizing the provisional assessment system (voorlopige aanslagregeling). The interest rates for various tax categories have seen a notable increase. Given this scenario, it is imperative for taxpayers to promptly submit or modify a provisional assessment, preferably before May 1st. If you require assistance with this process, Crowe Peak’s team of tax advisors stands prepared to assist both you and your business. 

Increase in tax interest rates 

Starting this year, there have been adjustments to the tax interest rates in the Netherlands. These changes affect various taxes, each with its corresponding percentage: 

• Corporate income tax: the rate for corporate income tax has risen from 8% to 10%. 
• Other taxes: for other taxes, including income tax, the tax interest rate stands at 7.5% effective January 1, 2024. 

Tax interest is levied when the Dutch Tax Authorities (Belastingdienst) are unable to finalize an assessment promptly. This may occur if tax returns are not submitted on time or if the provisional assessment later differs from the final assessment. In such instances, tax interest is imposed on the outstanding amounts. 

Act before May 1st! 

To steer clear of tax interest charges, it is crucial to have submitted the income tax return for the 2023 tax year before May 1st, and the corporate tax return before June 1st. Alternatively, requesting a timely provisional assessment, ideally before May 1st, that aligns with the anticipated tax liability for 2023 is essential. Therefore, it is advisable to act this month to prevent unnecessary interest payments. 

If you need help applying for a provisional assessment, please contact your regular contact at Crowe Peak. We are here to support you and ensure you avoid unnecessary tax interest payments. Interested in learning more about how Crowe Peak can benefit your business? Contact us here.