In the newsletters we regularly provide articles about the tightened tax penalty (fine) regime. From the reactions to the articles it appears that these were read with close attention and there is a demand for more information on the prevention of penalties.
Below is a summary of the various forms of penalties from the Tax Office with their respective amounts specified.
Late filing/payment penalties
The Tax Office can charge a penalty if a tax return is filed late or not at all. Also if the tax payable is not paid, or paid too late the Tax Office can charge a penalty. From now on these penalties will be adjusted every 5 years for inflation. The first adjustment (for inflation over the last 5 years) is dated January 1, 2010.
From July 1, 2010 there is considered to be a payment default on the payroll tax if the payment is not received within seven calendar days after the final due date (previously the date of the tax assessment was the determining date). You are liable for payroll tax filing penalties if the return is received later than seven calendar days after the final due date.
The maximum penalty for the failure to file or late filing of income tax and corporate income tax is € 4,920. If it is the first time that a taxpayer fails to file a corporate income tax return on time, the penalty is € 2,460. If it is the first time that a taxpayer fails to file an income tax return on time, the penalty is € 226 (unchanged). The second time the penalty will be € 984.
If no adustment has been made for the private use of company car a penalty of € 3,936 is imposed and a penalty of € 4,920 for an incorrect or incomplete kilometre record.
With effect from July 1, 2009, the penalty for failure to report box-3 income was raised to a maximum of 300 percent of the tax payable. Furthermore, the voluntary disclosure scheme of 1 January 2010 has changed by bringing the voluntary disclosure period back to two years. From now on a fine of 15 percent (of the tax payable) can be imposed and from July 1, 2010 as much as 30% can be imposed on undeclared foreign capital dating back more than two years. This also applies for other tax types.
From 2010 new rules apply for cross-border Value Added Tax (BTW), also goods and service providers should be familiar with the new form related to Intra-Community Supplies (ICP). In connection with this change new penalty provisions are set. If the obligation to complete monthly cross-border VAT returns are not satisfied (for supplies to other member states exceeding € 100,000 per quarter) a penalty of a maximum of € 4,920 can be imposed.
Summary of penalty amounts
| Tax | Maximum | Minimum |
| Income tax (IB/SW) | maximum € 4.920 | € 226 (second failure € 984) |
| Company tax (Vpb) | maximum € 4.920 | € 2.460 |
| VAT (BTW) | maximum € 123 | € 61 |
| Payroll tax (LB) | maximum € 1.230 | € 61 |
| Payment default (LB/OB) | maximum € 4.920 | 2% with a minimum of € 50 |
| After investigation payment default (LB/OB) | maximum € 4.920 | 10% with a minimum of € 50 except for private use of company car (see above) |
| Voluntary improvement through supplementary declaration | Tax amount (over the calendar year) is less than 20.000 euro or less than 10% of amount paid or refunded | no penalty |
| Voluntary improvement through supplementary declaration | other cases | 5% with a maximum of € 4.920 |
| Negligence in connection with ICP | maximum € 4.920 | first failure: 2,5% second or third: 5% next failure: 25% non-compliance with monthly returns: maximaal € 4.920 |
Knowledge offence penalties
| Tax | (criminal) intent | gross negligence |
| Assessment (IB/SW/Vpb) | 50% t/m 100% For box 3 income 150% t/m 300% |
25% – 50% |
| Back taxes (IB/SW/Vpb) | 50% – 100% For box 3 income 150% – 300% |
25% – 100% For box 3 income 75% – 150% |
| Reassessment (OB/LB) | 50% – 100% (for private use of company car: 80% – 100%) |
25% – 100% (for private use of company car: 40% – 100%) |
| Voluntary disclosure | no penalty | no penalty |
| Voluntary disclosure after two years or more (exclusively IB/SW/Vpb) | 15% (from 1 juli 2010: 30% for concealed assets) |
15% (from 1 juli 2010: 30%) |
There is also a penalty policy for the payroll tax and the VAT.
From the first payroll tax return for 2009 and for the VAT for 1 April, applies pursuant to the decision CPP2008/2386M:
• A company that files their payroll tax return too late, but within the grace period of seven days does not receive a fine;
• A company that pays the payroll tax or VAT payable to the Tax Office too late, but within the grace period of seven days, does not receive a fine. The condition for this is that the business has paid the tax for the previous period on time;
• The amount of the penalty (for non-/late completion of return or non-/late payment) is in principal not increased regardless of the number of times a fine has previously been imposed.