Pay off your tax debt with a payment arrangement from the Tax Administration
Have you been granted a special tax payment extension due to coronavirus? You have had to pay off your tax debt since 1 October 2022. Read more about what the payment plan means for you.
Tax debt after special tax payment extension
You have been granted a special tax payment extension (in Dutch) due to the coronavirus crisis. For example, for your turnover tax (VAT), income tax, corporate tax, or recovery interest. The taxes that you have not yet paid jointly form your tax debt. You must always repay a tax debt.
Payment arrangement: pay off your tax debt in 5 years
You have 60 months (5 years) to pay off your tax debt: from 1 October 2022 to 1 October 2027. You pay a fixed amount each month to the Tax Administration. You pay a fixed amount per month.
Have you been affected by the childcare benefit scandal?
Were you a viction of the Dutch childcare benefit scandal (toeslagenaffaire)? And have you now received a letter concerning the completion of the restoration phase and the end of the suspension of recovery interest (Afronding UHT en einde invorderingspauze)? Then your repayments started on 1 April 2025 (in Dutch). And you will make repayments over 60 months (5 years). Read more about repayments if you are a victim of the benefits scandal (in Dutch) on Netherlands Tax Administration.nl.
Beware of falling behind on payment arrangements
Are you behind in repaying your corona debt? Or are you not paying new debts to the Tax Administration? The Tax Administration may then withdraw your payment arrangement (in Dutch).
Easing of payment schedule
The special tax payment extension has been relaxed. This allows you to ask for an adjustment of your payment schedule. You have 3 options, which you can also combine:
- Pause the payments for a maximum of 6 months or 2 quarters in a row;
- Pay per quarter instead of per month;
- Is your tax debt €10,000 or more? pay off the debt in 7 years (84 months) instead of 5 years (60 months).
To qualify for each of these measures, you must meet several conditions (in Dutch).
Ask to pause payments when you fall behind
Are you behind in your instalment payments? You can ask to temporarily pause the tax payments. This pause can also be backdated to a moment in the past. For instance, to 1 October 2023. Then you are no longer behind in your payments. This means you can also ask for other special payment arrangements. Such as repaying your debt in 7 years instead of 5.
Extra repayments: pay off your debt faster and pay less collection interest
You can always make extra repayments. Your monthly instalment will remain the same. This means you will pay off your debt faster.
You will pay less collection interest (invorderingsrente) on your debt in total, as it will take you less time to repay it. The collection interest rate was temporarily lower but has now returned to its previous level of 4%.
See your debt overview
There are 3 ways you can find out what your debt to the Netherlands Tax Administration is. And how much you have already paid off.
- Since June 2023 you receive a letter from the Tax Administration every 3 months with information about your payment schedule. This contains a total overview of your tax debt and the monthly amount of the payment scheme.
- You can ask for information about your tax debt via the Tax Information Line (0800 - 0543).
- You can request a summary of your tax debt from your tax consultant. You will then receive the debt statement by post or in your Message Box.
Do you have more debts?
You may be able to enter into a debt restructuring agreement (saneringsakkoord). You then agree with all your creditors that you will pay only part of your debts. The Tax Administration also cooperates in this. Read more about a debt restructuring agreement (in Dutch).
Having trouble repaying if you received too many benefits?
Do you not only have a repayment plan for your coronavirus-related debt, but are you also required to repay any overpaid benefits? And are you having trouble making the repayments?You can now request a personal payment plan (in Dutch)
Watch out for recovery interest
If you have not paid an assessment on time, you must pay recovery interest (invorderingsrente, in Dutch). Even if you have been granted the special payment extension. Since 1 January 2024, the interest rate is 4%. The interest is included in your monthly payment.
Any questions?
Contact the Tax Administration or call the Tax Information Line (0800 - 0543) to request information about your tax debt. Or you can request a statement of your tax debt from your tax consultant. You will then receive the debt statement by post or in your Message Box.