Netherlands: Increased interest on tax due for individual income tax, dividend tax, VAT, other taxes

Increase from 4% to 6%

Increase from 4% to 6%

Effective 1 July 2023, the interest on tax due charged on individual (personal) income tax, inheritance tax, payroll tax, dividend tax, value added tax (VAT), real estate transfer tax, private motor vehicle and motorcycle tax, excise duties, consumption taxes on non-alcoholic drinks, and environmental taxes will increase to 6% (from 4%).

Taxpayers who have not yet filed their individual income tax return for 2022 can minimize the interest on tax due by requesting an (additional) provisional tax assessment, that will allow them to estimate how much tax is payable and pay the amount in advance, thus reducing any interest on tax due. For purposes of the 2022 individual income tax assessment, the interest on tax due is calculated over the period from 1 July 2023 through six weeks after the date of the (provisional) 2022 individual income tax assessment.

The increase will not apply to corporate income tax and (conditional) withholding tax on interest and royalties, which are currently subject to 8% interest on tax due.

Read a June 2023 report prepared by the KPMG member firm in the Netherlands



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