Interest on tax and interest on late payment

When imposing tax assessments, the Netherlands Tax Administration (Belastingdienst) applies two types of interest:

• interest on tax (belastingrente)
• interest on late payment (invorderingsrente)

These taxes are compensations for lost interest.

Paying or receiving interest on tax

The Tax Administration charges interest on tax (belastingrente, in Dutch) when unable to perform a tax assessment in time. For instance, because you were late declaring your taxes. The Tax Administration will reimburse your interest on tax, for instance when they are late (without reason) imposing a tax assessment. Do you disagree with the Tax Administration’s decision? You may object to the interest on tax (in Dutch).

Interest on late payment

If you did not pay a tax assessment in time, you must pay the Tax Administration interest on late payment (invorderingsrente, in Dutch). You pay interest on late payment from the day after the due date until the day the amount is credited to the Tax Administration’s account. This also applies if you were granted an extension. Did you miss out on interest because you have paid too much? In some cases the Tax Administration will pay you interest on late payment. Interest on late payment is not a fine.

Does the Tax Administration take longer than 6 weeks to pay you any tax refunds you are due? In that case you will receive interest on late payment.

Objecting

If you do not agree with what your are charged, you can object to the (amount of) tax interest (in Dutch). You can do so by writing a letter in which you state:

• your name and address
• the assessment reference
• that you object to the amount of tax interest
• the reason you think the calculation of the amount is incorrect
• the date of signature
• your signature

You send the letter to the address stated on the assessment.

If you object against interest on late payment (in Dutch) you will also need to add a copy of the decision with your letter. You send the letter to:

Belastingdienst

Postbus 100

6400 AC Heerlen