Interest on tax due to increase to 6% for personal income tax and several other taxes

As of July 1, 2023 the rate for interest on tax due charged on personal income tax, inheritance tax, payroll tax, dividend tax, VAT, real estate transfer tax, private motor vehicle and motorcycle tax, excise duties, consumption taxes on non-alcoholic drinks, and environmental taxes will be increased from 4% to 6%.

This increase in interest on tax due will not apply to corporate income tax and (conditional) withholding tax on interest and royalties, which are currently subject to 8% interest on tax due. We refer to our memorandum of February 24, 2023.

If you have not yet filed a personal income tax return for 2022, you can minimize the interest on tax due by requesting an (additional) provisional tax assessment. For the purposes of the 2022 personal income tax assessment, the interest on tax due is calculated over the period from July 1, 2023 through to six weeks after the date of the (provisional) 2022 personal income tax assessment. By requesting a provisional tax assessment, you will be able to estimate yourself how much tax is payable and to pay this amount in advance, thus minimizing any interest on tax due.

If you have any questions about the above, your Meijburg tax advisor would be pleased to advise you on how to minimize the impact of interest on tax due and answer any questions you may have.