Amendment of Decree on Interest on (Overdue) Tax

The Junior Finance Minister has amended the Netherlands Decree on Interest on (Overdue) Tax, the central plank of which at the time of its introduction was that with effect from the first of October 2020 the interest charges on outstanding taxes across the board were to revert to their original rates prior to their temporary (COVID-related) reduction to 0.01 percent, from the standard 8 percent for corporation tax and 4 percent for all other taxes. The recent amendment has enabled the interest on outstanding corporation tax to be fixed at 4 (rather than the customary 8) percent, as a rate which is to remain in effect until year-end 2021.

As for the interest on overdue tax, the Emergency COVID‑19 (Miscellaneous Provisions) Act of the Netherlands has introduced a temporarily reduced rate of 0.01 percent, which – likewise – was originally to remain in effect until the first of October 2020 and which has now been prolonged until year-end 2021. The interest rate on outstanding (assessed) tax and that on overdue tax are both to revert to their original levels with effect from the first of January 2022. This will call for a Royal Decree to the relevant effect being issued.

Dutch version: Wijziging Besluit belasting- en invorderingsrente