Mitigate/avoid 10.5% interest on tax due by requesting an (additional) provisional corporate income tax assessment

As of March 1, 2023 the interest on tax due payable on corporate income tax and withholding tax assessments will increase from 8% to 10.5%. It is thus even more important to mitigate interest on tax due / avoid it by requesting an (additional) provisional corporate income tax assessment.  

Interest on tax due is payable if, six months after the end of the financial year, an (additional) tax assessment is imposed at a tax payable amount. For the 2022 year of assessment, interest on tax due is calculated over the period from July 1, 2023 (for split financial years:  from six months after the end of the financial year) until six weeks after the date of the (provisional) assessment. To mitigate / avoid interest on tax due, a request to revise the provisional assessment for 2022 should be submitted before May 1, 2023 (for split financial years: before the first day of the fifth month after the end of the financial year). Interest on tax due is not payable if the 2022 corporate income tax return is received before June 1, 2023 (for split financial years: before the first day of the sixth month after the end of the financial year). In that case, it is assumed that the (provisional) assessment will be imposed in accordance with the request or the tax return. It is also important that an (additional) provisional assessment be requested for earlier years, if necessary.

If you have any questions about the above, your Meijburg advisor would be pleased to answer them for you.