Against the backdrop of restrictive measures introduced by the Dutch government in connection with the coronavirus epidemic, it was decided to ease the tax policy. Taxpayers were allowed to defer payments until April 1, 2022. The deferment has expired, and the time has come to pay off the tax debt. Find out more about the government's coronavirus relief package on our website.
How will the debt be repaid?
From April 1, 2022, taxpayers must fully comply with current obligations for payments to the budget. The accumulated debt arising from the special deferral of payments must be repaid in equal installments within 60 months, from October 1, 2022 to October 1, 2027. Interest is charged on the amount owed, which must also be paid. The interest rate will change over time to reach the standard 4%. Percent change scheme:
- 01.01.2022 - 0,01%;
- 01.07.2022 - 1%;
- 01.01.2023 - 2%;
- 01.07.2023 - 3%;
- 01.01.2024 - 4%.
The tax authorities will draw up a 60-month debt repayment plan for the taxpayer. The entire amount will be divided by 60, and the debt will have to be paid in the form of a fixed monthly amount. Interest on the debt will accrue on the day preceding the payment.
How to save on interest?
The monthly payment amount will be determined by the tax authorities after August 1, 2022. If you pay off part of your tax debt before this date, the monthly payment amount will be lower, and the interest accrued on it will decrease accordingly.
If, after August 1, 2022, the debt is not limited to a fixed payment, but the debt is repaid faster, the monthly fixed amount will remain the same, but the total maturity of the debt will be reduced. Accordingly, interest charges will decrease, which will also save money.
If you feel that you are not able to pay off your tax debt within 60 months, you should contact the tax authorities and look for an acceptable solution. You can get advice from a tax specialist in the company Nalog.nl.
Publication Date: 07.06.2022
