Since 1 April 2022, taxpayers are no longer able to apply for special deferral of payment of taxes and newly arising tax debts must be paid within the period specified. Tax debts accumulated under the special deferral must be repaid starting from 1 October 2022. In this newsflash, we outline the consequences.
New payment obligations
Taxes for which returns must be filed again on or after 1 April 2022 must also be paid within the statutory periods. For example, both submission and payment of the Q1 2022 VAT return must occur before 30 April 2022.
Furthermore, no deferral of payment will be granted for tax assessments with a due date after 1 April. For example, an assessment issued on 9 March 2022 has a due date of 20 April 2022 (6 weeks) and must be paid before 20 April 2022, therefore.
Exception - provisional assessment 2022
For provisional income tax and corporate tax assessments for the year 2022 it has been determined that, by way of exception, these fall under the special deferral. As a result, you are not required to pay the monthly instalments from April 2022 to December 2022. However, these instalments will be included in the payment scheme that comes into effect on 1 October 2022. In other words, the unpaid instalments relating to the provisional assessment 2022 will be added to the debt and form part of the monthly repayment scheme.
Consequences of failure to pay (on time) as of 1 April 2022
As of 1 April 2022, failure to pay the tax owed will have no consequences for the deferral of payment granted as of 1 October 2022 (commencement of payment scheme). However, the Tax and Customs Administration may impose a penalty or implement collection measures. It is advisable, therefore, to contact the Tax and Customs Administration if you are unable to meet your payment obligations as of 1 April 2022.
Payment scheme as of 1 October 2022
The payment scheme includes all tax debts accrued in the period from 12 March 2020 to 31 March 2022. If requested, so-called pre-Corona debts (tax debts dating from before 12 March 2020) may also be included in the payment scheme.
The payment scheme offers the option to repay the debt in 60 monthly instalments (until 1 October 2027), starting from 1 October 2022. The Tax and Customs Administration will inform the taxpayers in April 2022 about the amount of the tax debt, the conditions of the scheme and the monthly amount.
The final date for payment of the first instalment is 31 October 2022.
Interest on overdue tax
In addition to the monthly instalment, interest on overdue tax must also be paid. As part of the Corona measures, the interest on overdue tax has been reduced from 4% to 0.01% (23 March 2020 to 30 June 2022 inclusive). As from 1 July 2022, the interest on overdue tax will gradually be increased to 1% (as of 1 July 2022), 2% (as of 1 January 2023), 3% (as of 1 July 2023) and 4% (as of 1 January 2024).
Would you like more information?
Would you like more information about the payment scheme? Please contact your regular RSM consultant or send an email to: [email protected]