Tax debt after special tax payment extension
You have been granted a special tax payment extension due to the corona crisis. For example, for your turnover tax (VAT), income tax, or corporate tax. During the payment extension, you did not have to pay any tax. The taxes that you have not yet paid jointly form your tax debt. You must always repay a tax debt.
Avoid having to repay your tax debt in one payment
Do you have a payment arrangement for your corona debt? And do you not meet the conditions of the payment arrangement? For example, because you are in arrears with repayments. If so, you will have received a letter about this from the Tax Administration in April 2023.
Did you take no action after that? Then you will receive another letter in mid-July 2023. This will state that your payment arrangement will be cancelled as of 15 August 2023.
To resolve this, call the Tax Information Line immediately on 0800-0543. This can prevent you from having to pay back all of your tax debt in one go before 29 August 2023.
Read more about the revoking of the payment arrangement (in Dutch) and what you can do at Belastingdienst.nl.
Conclude a restructuring agreement before 1 October 2023
Do you have more debts? Perhaps you can conclude a restructuring agreement (saneringsakoord). Then you agree with your creditors that you will only pay part of your debts. Until 1 October 2023, the Tax and Customs Administration relaxes one of the conditions for participating in a restructuring agreement (in Dutch).
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.
Special payment arrangements
Some entrepreneurs may have difficulties paying off their tax debt in the allotted time and manner. For example, businesses where the income fluctuates due to seasonal influences. To help them, the government has decided to make it possible, under conditions, to:
- pause the payments for a maximum of 6 months or 2 quarters in a row;
- pay per quarter instead of per month;
- pay off the debt in 7 years (84 months) instead of 5 years (60 months). This is only possible if your tax debt after the payment extension is more than €10,000.
To qualify for each of these measures, you must meet several conditions. For example, you have to pay the tax assessments you have received after 1 April 2022 without fail, and continue to do so. For the 7-year payment arrangement, you must also send the Tax Administration a written explanation and proof that you will not be able to pay in 5 years, but that you will be able to pay in 7. And your tax debt must be at least €10,000. Learn more about the conditions on the Tax Administration website (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 2022. 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.
Your personal payment arrangement
You will have received letters from the Dutch Tax and Customs Administration in 2022. This has information about your payment arrangement. These letters included a total overview of your tax debt and the monthly amount of the payment schedule.
Are you behind in paying your corona tax debt? If so, you will have been notified by the Tax Administration in spring 2023.
Pay sooner or more
Do you want to start repaying earlier? That is possible. Your tax debt will then become smaller. And the monthly amount (including recovery interest) of your payment scheme will be lower as a result. You can also make extra repayments during the term of your payment scheme.
Repayment scheme if you received too many benefits
Did you receive too many benefits as part of a support scheme? And are you struggling to pay these back? You can now request a personal payment plan.
If you have not paid an assessment on time, you must pay recovery interest (in Dutch). Even if you have been granted the special payment extension. The recovery interest was reduced (in Dutch) to 0.01% until 31 June 2022. After that, it will gradually return to the old level at 1% increase per year. Until it reaches 4% on 1 January 2024. The interest is included in your monthly payment.
Interest rate for corporate income tax
You pay tax interest for corporate income tax (vennootschapsbelasting) if the Tax Administration is unable to issue an assessment on time. For example, because you filed your tax return for your business too late or for an incorrect amount. This interest rate was temporarily reduced to 4%, but this has been reinstated at 8%.
Contact the Dutch Tax and Customs 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.