Requesting a payment arrangement

Note. You can request a payment arrangement for with eased terms from 21 April 2021 until 31 August 2021.
Read more: Corona situation: The terms of the payment arrangement will be temporarily eased.

This guidance concerns both individual taxpayers and corporate taxpayers.

If you have temporary financial difficulties and you need more time for paying your taxes, you can ask for a payment arrangement. While you have a payment arrangement in force, the Tax Administration will not send the taxes included in the arrangement to the enforcement authorities for recovery.

In addition, a payment arrangement prevents a business from being removed from the prepayment register and having their tax debts published on the tax debt register or on the protest list.

What does a payment arrangement require?

You must ask for a payment arrangement yourself. You can only get a payment arrangement if

  • your financial difficulties are temporary, not long-term
  • you do not have taxes in recovery by enforcement
  • you have filed all required tax returns and reports to the Incomes Register (earnings payment reports and employer’s separate reports)
  • you have paid all taxes that were included in a previous payment arrangement with the Tax Administration

However, before you make the decision to ask for a payment arrangement, please consider if an arrangement is actually necessary. You can pay your taxes later than the original due date when you receive a payment reminder. Note that the reminder is included in your tax summary and not a separate letter.

You will receive 1–3 reminders before your overdue taxes are sent to the enforcement authorities for recovery.

The number of reminders depends on whether you have any other unpaid taxes. If your taxes are being sent to recovery by enforcement, you will be notified of it in advance on the final reminder.

How do I ask for a payment arrangement?

For most tax types, you can request a payment arrangement in MyTax or by calling our service number 029 497 028 (standard call rates).

See the instructions: How to request a payment arrangement in MyTax

Read instructions on how to request a payment arrangement for different tax types:

You can only request a payment arrangement for back taxes after your tax assessment has ended. You can see the end date of your tax assessment on your tax decision or in MyTax. However, your assessment end date may change if you or your spouse make changes to the tax return or if the Tax Administration receives other information that affects your tax assessment. In this case, you will receive a new tax decision.

A party to an estate of a deceased person can request a payment arrangement on behalf of the estate if they have a power of attorney signed by all the parties to the estate. The parties may also authorise someone outside the estate to ask for the arrangement.

You can request a payment arrangement for car tax. Please note, however, that you must pay all the car tax included in the payment arrangement before you can register the vehicle.

You can request a payment arrangement for inheritance tax in MyTax.

Note that if you request a payment arrangement for some other type of tax, inheritance tax will be automatically included. This is the case despite the law stating that unpaid inheritance tax is not sent to enforcement until two years after the due date of the first instalment.

When will the payment arrangement come into force?

The payment arrangement enters into force as soon as the Tax Administration has accepted your request. If you used MyTax to ask for the arrangement, it may be accepted immediately in an automated procedure if all the requirements are fulfilled.

  • If you ask for an arrangement in MyTax, you can see the response to your request as soon as it has been processed.
  • If you ask for an arrangement over the phone, the response will be sent to you by post within a week.

If you are not granted an arrangement, you will be notified of it by letter or by phone.

How do I pay taxes in a payment arrangement?

You receive a payment plan and payment instructions for the taxes in the arrangement by post. You will also receive payment plans in MyTax.

Follow the payment plan and pay the taxes in equal-sized monthly instalments. The first due date will be within one month from the date when your request was granted. The length of the payment plan or the size of the instalments cannot be changed afterwards.

However, 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.

When sending your payments, use the bank reference number that you received when the payment plan was set up. This will make sure that your payments are correctly allocated to the taxes included in the plan.

Continue paying your other taxes not included in the arrangement normally, following the instructions you have received on your tax decision or in MyTax. Please note that self-assessed taxes that are not included in a payment arrangement cannot be paid in advance before the start of the month in which they fall due.

A payment arrangement does not affect the amount of late-payment interest. Even if the payment date of a tax is postponed due to a payment arrangement, late-payment interest is still imposed on the tax from the day after the original due date up until the date when the tax is paid. The rate of late-payment interest is 7% in 2021.

Can my payment arrangement lapse?

When a payment arrangement is in force, the Tax Administration's automatic system makes regular checks on how the taxpayer makes the payments. Your payment arrangement will lapse if

  • you do not follow the schedule of the payment plan
  • you leave other taxes unpaid while you are on the plan
  • you do not file your tax returns, such as tax returns on your self-assessed taxes or income taxes.

The automatic system will notify you if your payment arrangement lapses. After the arrangement has lapsed, the Tax Administration sends the unpaid taxes to the enforcement authorities for recovery. Unpaid VAT, withholdings and employer's health insurance contributions may also be published on the public protest list. In addition, the tax debts of business enterprises may be published in the tax debt register.

Note an exception: Inheritance tax included in a lapsed payment arrangement will not be sent to enforcement until two years after the due date of the first instalment.

Please note: The Tax Administration will not grant a new payment arrangement for taxes included in a lapsed arrangement.

Tax refunds or other payments can be used on taxes in payment arrangements

If your tax refund is used on taxes included in a payment arrangement, this decreases the total amount of taxes included in the arrangement. After this, you can choose how to continue with your payment arrangement:

  • You can pay the next instalment normally according to the payment plan. If the amount of refund used is enough to cover one or multiple instalments, your payment arrangement may end sooner than originally planned.
  • Alternatively, you can consider the use of your refund as a payment made, and subtract this amount from your next payment. Remember to continue following the payment arrangement as normal after this. This way, your payment arrangement will end according to the original payment plan.

If you make a payment intended for other taxes, but you do not have taxes on which it could be used at the time of payment, it will be used on your taxes in a payment arrangement.

Frequently asked questions

Your payment arrangement may have lapsed for any of the following reasons:

  • You failed to follow the payment plan.
  • 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.
  • You have not filed all your 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.

After the Tax Administration has finished your tax assessment for 2020, you can ask for a payment arrangement for that year’s back taxes.  You can see the end date of your tax assessment on your tax decision or in MyTax.

We recommend that you do not submit an application for payment arrangement until it is absolutely clear that you cannot pay the tax by its due date.

If you are able to pay part of the tax, we recommend that you do so. Send your partial payment by the due date of the tax. After that, the remaining part of the tax will then be the amount for which you submit your application for a payment arrangement.

You will only have to pay late-payment interest on the remaining part of the tax.

When we calculate the sizes of the instalments that you will have to pay, we use the date when the arrangement is approved as the start date. In other words, the start date is not the same as the due date of the tax.

We recommend that you log in to MyTax to send your application for a payment arrangement.

See our guidance: How to request a payment arrangement in MyTax.

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?