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Tax Interest

Your tax return has been submitted by The Bookie, and later you will receive the final assessment. The amounts payable on that assessment all match what you saw in The Bookie’s return. However, there is something you don’t understand: tax interest.

Written by Thomas van de Beek

What is tax interest?

Tax interest is interest you pay to the tax authorities on a debt, namely the tax you owe, for example on your income for a given year. You pay interest when the tax authorities issue an assessment with an amount due.

View the current rates.

Is tax interest tax-deductible for business purposes?

Yes, if it relates to a business tax. This includes VAT, payroll tax, and corporate income tax.

Unfortunately, it is not deductible for income tax and the health insurance contribution (ZVW). These are considered private taxes, so the interest is also treated as a private expense.

Who pays tax interest?

As an entrepreneur, you always pay it yourself. You determine how your tax returns are handled. Below you can read how.

Unfortunately, you cannot hold your accountant liable for tax interest. The income tax period is extremely busy for all accountants, making it impossible to file returns for all clients in March and April. To avoid penalties, we request an extension, but there is a good chance you will incur tax interest if you do not follow one of the tips below.

How do you avoid tax interest?

  1. Provisional assessment during the year
    The most obvious way to avoid tax interest is a provisional assessment. You pay little to no tax interest if you pay a provisional assessment during the tax year.
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    Read more about the provisional assessment

  2. Urgent request: file before May 1
    Do you prefer to pay your tax after the year ends? There are still ways to prevent (too much) tax interest.

    We can offer expedited processing by scheduling extra overtime. We aim to complete your requested work within a month. For this, we charge an additional 25% on top of your annual subscription. This way, your return is filed before May 1 and you won’t pay interest.
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    Read more about how income tax works at The Bookie

  3. (Provisional) return before final filing
    In this case, you submit a provisional return so that an assessment is issued quickly based on the profit shown in The Bookie Webapp. You can do this yourself. This ensures you pay little to no interest and will likely receive a refund.

After that, we can calmly submit a correction with complete information.

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