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.
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).
You can apply for these special arrangements from 20 September 2022.
Note: it will only be possible to apply for these special measures after you have received the letter from the Tax Administration detailing the monthly amount you have to pay.
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 a letter from the Dutch Tax and Customs Administration in the first half of 2022. This has information about your payment arrangement. You will then have received a second letter before 1 October 2022. The letter states:
- a total overview of your tax debt
- the terms of the payment arrangement
- the monthly amount of the payment arrangement
You can also request your tax debt amount via the Tax Information Line (0800 – 0543). Or you can request an overview of your tax debt from your tax adviser. You will then receive the debt overview by post or in your Message Box.
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.
Change payment arrangement
Do you need more than 60 months from 1 October 2022 to pay off the tax debt you have accrued during your special payment extension? Then call the Tax Information Line (0800 – 0543) to discuss your payment arrangement. Do this immediately when you expect problems.
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%.
Important dates for your taxes
- 31 March: This was the last day to request or extend a special deferral of payment from the Tax Administration (in Dutch).
- 1 April: From this date, you must pay the tax bills again according to the normal instalments. You will no longer receive a special extension of payment.
- 1 October: Start paying off your tax debt. You have 60 months to do this.
- 31 October: Pay the 1st instalment of the payment arrangement before this date.
- 1 October: You have paid off your debt according to the payment arrangement.
Contact the Dutch Tax and Customs Administration or call the Tax Information Line: 0800 - 0543