Netherlands: Interest on corporate income tax and withholding tax to increase to 10.5%
As of 1 March 2023, interest on tax due payable on corporate income tax and withholding tax assessments will increase to 10.5%
Interest on corporate income tax and withholding tax to increase to 10.5%
The interest on tax due payable on corporate income tax and withholding tax assessments will increase to 10.5% (from 8%) as of 1 March 2023.
Interest on tax due is payable if, six months after the end of the financial year, an (additional) tax assessment is imposed at a tax payable amount. For the 2022 year of assessment, interest on tax due is calculated over the period from 1 July 2023 (for split financial years: from six months after the end of the financial year) until six weeks after the date of the (provisional) assessment.
KPMG observation
To mitigate interest on tax due, a request to revise the provisional assessment for 2022 must be submitted before 1 May 2023 (for split financial years: before the first day of the fifth month after the end of the financial year). Interest on tax due is not payable if the 2022 corporate income tax return is received before 1 June 2023 (for split financial years: before the first day of the sixth month after the end of the financial year). In that case, it is assumed that the (provisional) assessment will be imposed in accordance with the request or the tax return. It is also important that an (additional) provisional assessment be requested for earlier years, if necessary.
Read a February 2023 report prepared by the KPMG member firm in the Netherlands
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