Pay off your tax debt with a payment arrangement with the Tax Administration

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 then pay a fixed amount each month to the Tax Administration. Would you like to start repaying portions of your debt earlier? You can. Your tax debt will become smaller, and the monthly amount of your payment arrangement will then become lower. You can also make additional payments during the term of your payment plan.

Your personal payment arrangement

After 1 April 2022, you will receive a letter from the Dutch Tax and Customs Administration with information about your payment arrangement. The letter states:

• a total overview of your tax debt
• the terms of the payment arrangement
• the monthly amount of the payment arrangement
  

View your tax debt

Your tax debt will be stated in the letter that you will receive from the Tax and Customs Administration after 1 April 2022. 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.

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.

Recovery interest

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 has been reduced (in Dutch) to 0.01% until 31 December 2021. 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.

No more postponement from 1 October 2021

Pay your new tax obligations on time from 1 October 2021. If you do not, you can receive 1 or more fines. Are you still unable to pay on time after 1 October 2021 due to the corona crisis? And can you demonstrate that with a statement? Then you can apply for the temporary additional allowance (in Dutch) from 1 October 2021 to 31 January 2022.
Temporary additional allowance Is your application approved? Then until 31 January 2022 you do not have to pay the taxes for which you had a special payment extension. These new tax debts are included in your payment arrangement.

Important dates for your taxes

2021:

• 30 September: Last day to request or extend a special deferral of payment from the Tax Administration.
• 1 October: 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 2021 to 31 January 2022: temporary additional allowance
  

2022

• 31 January: temporary additional allowance ends.
• 1 October: Start paying off your tax debt. You have 60 months to do this.
• 31 October 31: Pay the 1st instalment of the payment arrangement before this date.
• 1 October: You have paid off your debt according to the payment arrangement.
  

Any questions?

Contact the Dutch Tax and Customs Administration or call the Tax Information Line: 0800 – 0543