Increase in tax interest to 10.5%

With effect from 1 March 2023, tax interest on corporate income tax and withholding tax on interest and royalties will be increased from 8% to 10.5%. This keeps up with the increase in the statutory interest rate for commercial transactions. Tax interest for other taxes will be 4% from 1 March 2023.

For the 2022 tax year, this means it is even more important to file a tax return or request a provisional assessment within 6 months of the end of the 2022 tax year. This is because tax interest is calculated after the 6 months have passed and ends 19 weeks after the tax authority receives the tax return, or 14 weeks after the tax authority receives a request to impose or adjust a provisional assessment or on the expiry date of the payment term of the assessment, if earlier. Tax interest may also be charged if an underpayment of provisional assessment has been imposed in respect of tax years earlier than 2022. It is therefore advisable to also assess the assessment position for earlier tax years.

If the submitted tax return is deviated from for a higher amount, additional tax interest may still be due.

Apart from that, no interest is paid on overpayments on the provisional assessment.

The tax interest rate should also be taken into account in the context of a position statement in the tax return and discussions with the tax authorities.