Payment arrangements with eased terms no longer available after 31 August

Due to the exceptional circumstances caused by the coronavirus, taxpayers could request payment arrangements with eased terms from 25 March to 31 August 2020.

Starting 1 September, requests for payment arrangement will be processed according to the regular terms. In a regular payment arrangement, the late-payment interest is 7% and the first instalment must be paid within one month from the start of the arrangement. Read more about payment arrangements.

The payment arrangement with eased terms was based on a temporary legislative amendment, which allowed for a late-payment interest rate of 2.5% to be applied on taxes included in a payment arrangement that fell due between 1 March and 31 August 2020 as well as on repaid VAT. In addition, the temporary amendment allowed for the first payment instalment to be postponed until three months after the start of the arrangement.

Your payment arrangement has probably lapsed because you have incurred new tax debt after the arrangement was made. In other words, you have not paid all of your taxes outside the payment arrangement in time.

Your arrangement may also lapse if you have not followed the schedule of the payment plan or if you have not filed all the required tax returns.

You cannot request a new payment arrangement for the taxes that were included in the lapsed arrangement.

Taxes and other payments included in the lapsed payment arrangement will be sent to the enforcement authorities for recovery. You can check in MyTax if your unpaid taxes have already been sent to recovery by enforcement. There is no exact timetable for when taxes are sent for recovery.

If your tax has been sent to the enforcement authorities, you must pay it to them. Contact the enforcement authorities if you have questions about the payment of taxes in enforced recovery.

Can you pay the tax?

If the taxes and other payments that were included in your lapsed arrangement are still available for payment in MyTax, pay them immediately and you may avoid enforced recovery.

Please note that you have to pay late-payment interest on taxes included in a lapsed payment arrangement, starting from the day after the original due date. You can see the interest amount in MyTax.

It is easiest to pay the taxes in MyTax, where the late-payment interest is automatically included and the correct reference number is pre-completed in the payment template. If you pay the taxes in your bank’s e-service, use the reference number stated in the payment plan that you were given with your payment arrangement.

You cannot change the contents of an active payment arrangement.

For example, you cannot ask the Tax Administration to remove taxes from the arrangement or add new taxes to it.

In addition, you cannot change the number of payment instalments. However, you can make payments in an accelerated schedule, which may reduce the overall number of your payment instalments. Read more: Can I make bigger or more frequent payments than required by the payment plan?

When your request for payment arrangement is accepted, any taxes that you are liable to pay and that are falling due within the next 45 days are automatically included in the arrangement.

If you had not filed your self-assessed tax return before the payment arrangement was made, the Tax Administration was not aware of your self-assessed taxes and they could not be included in the arrangement. New taxes cannot be added to the arrangement afterwards. Please pay the self-assessed taxes outside the payment arrangement using the reference number for self-assessed taxes.

Paying taxes in the payment arrangement

Yes. You can make payments in your arrangement at a faster rate or in bigger instalments than what is required by your payment plan. Always remember to use the payment arrangement’s reference number.

You can check the reference number

  • in the payment arrangement documentation, which you have received by post and in MyTax
  • in MyTax (Log in > Click "Paying taxes” under the Activities tab on the home page > Find the reference number in the yellow box).

If you pay taxes included in the payment arrangement faster than the payment plan requires, then the total amount of taxes included in the arrangement decreases faster and you will need to pay less late-payment interest overall.

Make sure that you are aware of how much of the taxes included in the payment arrangement you have paid. You can see the overall status of your payment arrangement in real time in MyTax.

Check your payment plan to make sure that the prepayment is included in your payment arrangement. If it is, you do not need to pay the e-invoice and you can delete it. Instead, you must pay the tax prepayment as part of your payment arrangement, using the arrangement’s reference number.

If you already paid the e-invoice, the payment will be used on your next prepayment instalment. If this payment covered your next prepayment instalment in its entirety, you will not receive a separate e-invoice for it later.

What is a payment arrangement with eased terms?

  • A payment arrangement gives you more time to pay your taxes. You can get up to 24 months from the date when the decision is made (21 instalments). This means that if you have an active payment arrangement, the Tax Administration will not send your tax debts to the enforcement authorities for recovery.
  • In addition, taxes that are included in a payment arrangement request are not recovered by enforcement authorities and a company’s tax debt is not published in the protest list in these circumstances. However, the tax debt can be published in the tax debt register despite the request for payment arrangement.
  • The first instalment of the payment arrangement with eased terms will fall due three months after the arrangement has become active, as opposed to just one month.
  • Following a temporary amendment to legislation, the rate of late-payment interest on taxes included in a payment arrangement with eased terms is lowered from 7% to 2.5%. The reduced interest rate is applicable to the following:
    • taxes included in a payment arrangement that fell due between 1 March and 31 August 2020
    • VAT that you asked to be returned to you as part of the payment arrangement
    • taxes that are paid back to you as part of the payment arrangement because you have requested that the use of your tax refunds on these taxes should be cancelled (Note: In this case, the reduced interest rate applies to VAT with a due date from 1 January to 31 August and other taxes with a due date from 1 March to 31 August)
  • In the payment arrangement, the Tax Administration will include all taxes that are overdue when the payment arrangement request is accepted as well as taxes that are falling due within the upcoming month.
  • If you receive tax refunds during the rest of the year after your payment arrangement request has been accepted, the Tax Administration will not use them on the taxes included in the payment arrangement. They will be paid to your company.

You are not removed from the tax debt register while your request for payment arrangement is waiting for processing. If the Tax Administration accepts your request, you will be removed from the register.

Related questions

Yes. In general, the coronavirus situation or financial difficulties caused by it do not allow for the removal of late-payment interest.

However, if you fall suddenly ill or are quarantined, and you do not have the necessary payment details and cannot use our e-services to pay your taxes on the due date, it may be possible to cancel your late-payment interest. You can request the non-collection of late-payment interest in MyTax.

The corona situation does not allow for tax exemption. If you have financial difficulties, you can request a payment arrangement.

If you would like to request the cancellation of your late-payment interest, please see the previous question: I will not be able to pay my taxes on time. Do I have to pay late-payment interest?