Temporary reduction of collection interest and tax interest
If you do not pay an assessment on time, you normally have to pay 4% recovery interest from the moment the payment term has expired. As of March 23, 2020, the tax authorities will temporarily reduce the collection interest from 4% to 0.01%. This applies to all tax debts.
The tax office charges tax interest if a tax return was not filed on time or was filed for an incorrect amount. The tax interest rate is 8% for corporate tax and 4% for other taxes. The tax office will also temporarily lower the tax interest rate to 0.01%.
This temporary measure will apply to all taxes subject to tax interest. The temporary reduction of the tax rate will take effect from 1 June 2020, except for income tax. For the income tax, the reduction will take effect from 1 July 2020.
The end date of the tax interest lowering is set on October 1st 2020. The interest will then increase back to 4%. Also the tax interest for the corporate income tax will increase to 4% instead of the previously applicable 8%, the 4% for corporate income tax will remain till the end of the year 2021.
If you need any assistance with your tax return, we have been assisting both companies and private individuals for many years.