Penalties and Fines

With regard to penalties and fines, there is also a distinction between self-assessed taxes and taxes that are assessed by the tax authorities.

For taxes assessed by the tax authorities, the fines for non-filing or late filing amount to up to a maximum of EUR 5,514. It is possible to impose the fine for non-filing until a definitive assessment is issued.

With respect to self-assessed taxes, the fines for non-filing or late filing amount to up to EUR 136 (up to EUR 1,377 if relating to wage taxes). It is possible to impose a fine for non-filing up until one year after the term of filing has passed. Fines for incorrect filing may be imposed until 5 years after the end of the calendar year in which the tax return was filed. In case of non-payment or late payment of tax, the fine can amount to EUR 5,514. With respect to the non-payment of the tax, the fine may be imposed until 5 years after the calendar year in which the tax burden arose.

In case a taxpayer intentionally or due to gross negligence fails to file, or files an incorrect or incomplete return, relating to a tax assessed by the tax administration, a penalty of up to 100% of the tax assessed may be imposed. Where no taxes are due despite the reassessment because of the carry-forward of losses, the losses are disregarded for the purposes of determining the penalty.

Where a taxpayer fails intentionally or due to gross negligence to fully or partially pay the taxes due within the statutory term, a penalty of 100% of the amount unpaid may be imposed.

Where a taxpayer voluntarily repairs an omission by filing a tax return or a complement to an incomplete tax return, penalties may be reduced, which are determined on a case-to-case basis. Prior to 1 January 2020, no penalty was imposed for negligence or intent if reparation occurs within two years after the incomplete filing or filing term. Fines will be moderated if the taxpayer voluntarily repairs omissions before he suspects or reasonably has reasons to suspect that the omission is known to the tax inspector.

The taxpayer may appeal against all fines imposed.

Interest

Underpaid Corporate Tax

Late interest is due over underpaid assessed corporate taxes. This singular interest is calculated over the period that starts six months after the taxable period (i.e., from 1 July when the taxable period corresponds to the calendar year) and ends on the day previous to the day on which the preliminary assessment is payable. The late interest percentage is determined quarterly. Effective 1 January 2015, dividend withholding tax is included within the scope of taxes that are subject to interest in case of late payment.

The rate of interest for underpaid corporate taxes is 8% and is linked to the European Central Bank (ECB) main refinancing rate (ECB rate plus 8%). On 23 February 2023, the State Secretary for Finance (Taxation and Tax Administration) issued a letter instructing the tax authority to maintain the 8% interest rate until further notice despite an increase in the ECB rate from negative to 2.5%.

Late Payment of Corporate Tax

The rate of interest for late payment of assessed corporate tax is set at 4% and is linked to the legal interest rate for non-commercial transactions.

COVID-19 Emergency Measures

To counter the economic impact of the COVID-19 pandemic, the Dutch government introduced a reduction in late payment of interest for all tax debts from 4% to 0.01% from 23 March 2020 until 30 June 2022 (extended from 31 December 2021).

On 27 November 2021, the Dutch government announced that the interest rate for late payment will not automatically revert back from 0.01% to 4% from 30 June 2022 (extended from 31 December 2021) but will be increased gradually from 1 July 2022 onwards, as given in the below table: