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14.5. Interest and Penalties

Late Return Filing

Failure to file a tax return by the due date will result in a penalty equal to 10% of the taxes due, up to a maximum of EUR 25,000.

A penalty of up to EUR 25,000 will also apply when a taxpayer fails to file a return despite reminders from the tax authorities, and an estimated assessment will be issued.

Late Tax Payment

Late tax payments are subject to an interest penalty at the rate of 1% per month applicable after a 3-day grace period.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, the accrual of interest on underpayments of income tax and VAT for the calendar year 2020 is deferred from 1 April 2022 up to 1 October 2022 (extended from 1 July 2022).

Filing of an Incorrect Return

In the case of negligence leading to a reduction of tax due, a fine up to EUR 50,000 will be imposed.

For cases of fraud through incomplete or incorrect returns, a fine of up to EUR 1.8 million will be imposed and potential imprisonment for up to 5 years. In cases of more serious fraud, such as forged documents or inducing an official to abuse his position, the potential imprisonment is up to 10 years.