The current tax interest rate of 8% for corporate income tax may be too high. That is the opinion of Advocate General (AG) Koopman in a recent opinion to the Supreme Court. According to the AG, the rate applicable since Jan. 1, 2022, is not well-founded and disproportionate to its purpose: to compensate the tax authorities' interest disadvantage.
The AG concludes that this rate of interest is non-binding, because the government has not sufficiently justified why precisely a rate of 8% would be justified.
What does this mean for you?
If the Supreme Court follows the AG's advice, this could have important consequences:
- Reduction in tax interest rate: The Supreme Court may set a lower interest rate, possibly equal to the statutory interest rate for non-commercial transactions:
- 2% in 2022
- 6% in 2023
- 7% in 2024
- 6% in 2025
- Refund of overpaid tax interest: Have you objected to tax interest? If so, you may be able to get money back.
- Relevance to pending objections: The procedure applies to all corporate taxpayers with an ongoing mass objection over the aforementioned interest period. The procedure may also be relevant for other ongoing (mass) objections.
Note: the Supreme Court has yet to rule. Therefore, the AG's opinion is not yet a final judgment.
What can you do now?
In order to qualify for a possible refund of any overcharged tax interest, it is essential that you file a timely objection. Only those who have filed an objection can benefit from a favorable ruling.
We are happy to support you in this. We have already submitted several notices of objection on behalf of clients.
Interested or questions?
Would you like us to object to tax interest for you as well, or do you have questions about your situation? Please contact your relationship manager or call us at our general telephone number 040 - 2 504 504.