Late payment interest and moratorium interest rates for 2019
Since last year the late payment interest rate is set in function of 10-year linear bonds, so there is no longer a fixed rate in tax matters. For the calendar year 2019, the interest rate for late payment interest is fixed at 4%; the rate for moratorium interests amounts to 2%.
When are late payment interests due?
Late payment interests are due by tax payers not paying their taxes due within the legally foreseen period.
Which interest rate?
Until 31 December 2017 a fixed rate of 7% was applicable.
As from 1 January 2017 the interest rate is annually adapted to the average reference indexes J with respect to the 10-year linear bonds for the months July, August and September of the preceding year for which the interest rate will be applicable, and this within a margin between 4% and 10% per year. For the calendar year 2019, the late payment interest rate is fixed at 4%. The FPS Finance now annually publishes the new interest rate in the last quarter in a notice in the Belgian Official Journal.
The late payment interest rate is applicable in case of non-payment of taxes of the Income Tax Code 1992 and the with Income Taxes equated taxes Code: personal income tax, corporate tax, legal entities tax, non-resident tax, withholding tax, circulation tax, tax on betting and gambling, tax on automatic games, (additional) tax on employees' participation in the profit or equity of the company.
VAT and a number of other taxes and duties are not envisaged.
When are moratorium interests due?
Moratorium interests are due by the State in case of repayment of taxes, withholding taxes, prepayments, late payment interest, tax supplements or administrative fines. Moratorium interest can also be granted when the State pays back with Income Tax equated taxes.
Granting moratorium interests is as from last year subject to a new and preliminary condition, being the sending of a prior notification by the tax payer to the FPS Finance in order to claim the interest. Moratorium interests are no longer automatically due.
The prior notification to claim the moratorium interest is sent to the tax authorities when the period for repayment has expired. This can be done by an ordinary letter, an objection or a subpoena.
No moratorium interests are due when they do not amount to 5 euro per month and per assessment, for the same tax year, or when the tax authorities do not have the identity or bank details of the tax payer, so that the tax authorities cannot make the repayment.
Which interest rate?
The moratorium interest rate is the same as for late payment interest, less 2%. For calendar year 2018 and 2019 the interest rate amounts to 2%.