Provisional assessment, tax interest and penalties: how do you avoid paying too much?

A provisional assessment is an estimate of the income tax or corporate tax you pay for this year. If the estimate no longer matches your profit, adjust it yourself. That prevents a large additional bill and often tax interest too, which is 5% a year in 2026 (Belastingdienst, tax interest rates).

For income tax you avoid tax interest with a correct return or a correct request for a provisional assessment before 1 May. For corporate tax, a return before 1 June or a request before 1 May applies. Penalties are something else: you get them for a return that does not arrive, or one that is wrong through intent or gross negligence.

In this article

1. What is a provisional assessment?
2. Why and how do you adjust your provisional assessment?
3. What is tax interest and how much is it in 2026?
4. How do you avoid tax interest?
5. How do you get an extension for your return, and does it stop the interest?
6. What penalty do you get if you are late or make a mistake?
7. What is collection interest, and what is the difference between interest and a penalty?
8. Frequently asked questions about provisional assessments, interest and penalties

What is a provisional assessment?

A provisional assessment is an advance payment of the tax for a year. The tax authority makes the estimate using data it already has, such as your return from last year (Belastingdienst, checking your provisional assessment). After your return comes the final assessment. What you have already paid is deducted from it.

An entrepreneur with a sole proprietorship or general partnership receives a provisional income tax assessment. If you have a private limited company, the company receives a provisional corporate tax assessment, and you as owner-director often receive a provisional income tax assessment for your own income. The same tax interest rules apply to both, with different dates (Belastingdienst, tax interest).

If you have a provisional assessment for this year, you pay it in equal monthly instalments. The number of instalments depends on the date on the assessment. An assessment dated 15 February 2026, for example, is paid in 10 instalments, and the full amount must be received by 31 December. If fewer than 2 full months remain after the date on the assessment, you have 6 weeks to pay (Belastingdienst, paying in instalments).

Why and how do you adjust your provisional assessment?

Because the estimate rests on old figures. If your business does much better or worse this year, it is no longer right. Changing it is not compulsory, but it prevents you from having to pay extra in one go later (Belastingdienst, checking your provisional assessment).

For income tax you adjust the provisional assessment in Mijn Belastingdienst, in the screen for business profit (Winst uit onderneming). For corporate tax you use the form in Mijn Belastingdienst Zakelijk, tax software or your tax service provider (Belastingdienst, provisional corporate tax assessment). Usually that is possible until 1 May of the following year. Once you have filed your return, it is no longer possible (Belastingdienst, until when to request or change).

An example from installation work. In 2026 an installer fits many more heat pumps than in 2024, on which his provisional assessment is based. If he adjusts the assessment in the summer, he pays the difference spread over the rest of the year. If he does nothing, the full amount only comes after his return in 2027, possibly with interest. It works the other way too. If a roofer had a wet spring with little work, he can lower the assessment and keep cash in the business.

Paying extra feels like a loss to many people. Swedish research using data from 3.6 million taxpayers for 2006 showed that people who had to pay extra on their return claimed deductions more often than people who got money back (Engström et al., 2015). A well-estimated provisional assessment removes that tension.

Do not set the estimate too low on purpose. If you deliberately give incorrect information in a request for a provisional assessment, the tax authority can impose a penalty of up to 100% of the tax that would be underpaid as a result (General State Taxes Act, article 67cc).

What is tax interest and how much is it in 2026?

Tax interest is interest you pay when the tax authority can only set your assessment after half a year, for example because your return was late or incorrect (Belastingdienst, tax interest). From 1 January 2026 the rate is 5%, for income tax and for corporate tax.

For corporate tax the rate used to be higher, for example 9% in 2025. On 16 January 2026 the Supreme Court ruled that this is not allowed. The tax authority has lowered the corporate tax rates from 2022 to those of the other taxes: 6.5% in 2025 and 5% from 2026 (Belastingdienst, tax interest rates).

The interest starts on 1 July after the tax year. If the assessment follows your return, the interest stops at the latest 19 weeks after the return is received, or 6 weeks after the date on the assessment if that is earlier. If the assessment differs from your return, the interest runs until 6 weeks after the date on the assessment. The tax authority counts 30 days per month and 360 days per year (Belastingdienst, tax interest on income tax).

On 16 October 2026 the rate for 2027 was not yet on the tax authority's overview page. The Tax Plan 2027 bill contains no change to the tax interest rules. That bill is not yet law.

It also works the other way. If you get money back, the assessment follows your return and the tax authority takes more than 13 weeks, you receive tax interest (General State Taxes Act, article 30fd).

How do you avoid tax interest?

By giving correct figures in time. For income tax you file a correct and complete return before 1 May, or request a correct and complete provisional assessment before 1 May. For corporate tax you file before 1 June, or request a provisional assessment before 1 May (SRA, April 2026, Belastingdienst, tax interest on corporate tax).

The assessment must follow your return or request. If it differs, because you forgot something or estimated too low, you still pay interest on the difference from 1 July (Belastingdienst, tax interest on income tax). An estimate you deliberately keep on the low side therefore gives no advantage.

If the assessment is dated before 1 July, there is no interest, even if you filed after 1 May (SRA, April 2026). If your company's financial year is not the calendar year, the dates shift with it. The interest then starts 6 months after the end of the financial year (Belastingdienst, tax interest on corporate tax).

How do you get an extension for your return, and does it stop the interest?

You request an extension for your income tax return before 1 May with a tax authority form. Within 3 weeks you hear whether you get it. If you want more than 4 months, you must explain why (Ondernemersplein, extension for tax returns). After 1 May you can no longer request an extension.

For corporate tax you request an extension within 5 months after the end of the financial year, so usually before 1 June. The extension then usually runs until 1 November. If you work with a bookkeeper or tax adviser, they can request an extension before 1 May through the extension scheme for tax service providers (becon extension). You then get an extension until 30 April of the following year (Ondernemersplein, extension for tax returns).

An extension does not stop tax interest. The interest simply starts on 1 July, even if your return may come later (General State Taxes Act, article 30fc). If you expect to pay extra and request an extension, also request a provisional assessment before 1 May that is as accurate as possible. You then avoid the interest and still have more time for the return.

What penalty do you get if you are late or make a mistake?

If you do not file an income tax return, not even after a reminder, you receive a late-filing penalty (verzuimboete). The law sets the maximum at €6,709 (General State Taxes Act, article 67a). The tax authority usually imposes 7% of that maximum, which is €469. For corporate tax the penalty is 50% of the maximum, just over €3,350 (Tax and Customs Administrative Penalties Decree, paragraph 21).

A late-filing penalty for these returns only comes if you do not file within the tax authority's deadline and also do not respond to the reminder. If you are systematically late, the penalty can rise to the maximum (Tax and Customs Administrative Penalties Decree, paragraph 21).

A penalty for negligence or intent (vergrijpboete) is heavier. You get it if your return is incorrect through gross negligence or intent, or if you deliberately do not file. For gross negligence the penalty is 25% of the tax underpaid, for intent 50% (Tax and Customs Administrative Penalties Decree, paragraph 25). The law allows up to 100% (General State Taxes Act, articles 67d and 67e).

If you spot a mistake yourself, correct it at once. If you file a correct return within 2 years, before you know or should suspect that the tax authority is aware of the mistake, you get no penalty for negligence or intent. That rule does not apply to income from a substantial interest or from savings and investments (General State Taxes Act, article 67n).

What is collection interest, and what is the difference between interest and a penalty?

You pay collection interest (invorderingsrente) if you pay an assessment late. It runs from the day after the final payment date until the money reaches the tax authority. From 1 January 2026 the rate is 4.3%. If the interest is €49 or less and it is your only or last payment on that assessment, you do not have to pay it (Belastingdienst, collection interest).

Interest is compensation for money that arrives late. Tax interest relates to an assessment that comes late, collection interest to a payment that comes late. A penalty punishes behaviour: no return, or a return that is wrong through intent or gross negligence. So you can get interest and a penalty for the same year. Why entrepreneurs often pay late, and what helps against it, is covered in the article Why do entrepreneurs pay tax late?

Frequently asked questions about provisional assessments, interest and penalties

1. Can I receive a provisional assessment I did not request?

   Yes. The tax authority sends it based on data it already has, such as your previous return. Always check it and adjust it if your profit is different (Belastingdienst, checking your provisional assessment).

2. I expect a refund. Do I then have to file before 1 May?

   You file within the deadline in your letter. You pay no interest if you get money back. If the tax authority takes more than 13 weeks, you actually receive interest (General State Taxes Act, article 30fd).

3. Do I get a penalty if I file my VAT return a few days late?

   Not if you file within 7 days after the deadline. After that the penalty can be 50% of the maximum of €165. If you pay the VAT late, the penalty is normally 3% of the amount, with a minimum of €50 (Tax and Customs Administrative Penalties Decree, paragraphs 22 and 23, General State Taxes Act, article 67b).

4. Can I object to tax interest?

   Yes, you can object to the tax interest you have to pay. If part of the amount had already been paid while the interest was calculated on the full amount, you can also ask for a reduction (Belastingdienst, tax interest).

5. What if I cannot pay my provisional assessment?

   Lower it if your profit is lower. If it is right but you cannot pay, you can request a deferral of payment. If you pay late, collection interest of 4.3% runs (Belastingdienst, collection interest).

Sources

• Belastingdienst, Overview of tax interest rates, accessed 16 October 2026. belastingdienst.nl
• Belastingdienst, How do I check my provisional assessment and when should I change it?, accessed 16 October 2026. belastingdienst.nl
• Belastingdienst, Tax interest, accessed 16 October 2026. belastingdienst.nl
• Belastingdienst, Paying in instalments (provisional income tax and corporate tax assessments), accessed 16 October 2026. belastingdienst.nl
• Belastingdienst, Requesting or changing a provisional corporate tax assessment, accessed 16 October 2026. belastingdienst.nl
• Belastingdienst, Until when can I request or change a provisional assessment?, accessed 16 October 2026. belastingdienst.nl
• Engström, P., Nordblom, K., Ohlsson, H. & Persson, A. (2015). Tax compliance and loss aversion. American Economic Journal: Economic Policy, 7(4), 132-164. doi.org
• Algemene wet inzake rijksbelastingen (General State Taxes Act), articles 30fc, 30fd, 67a, 67b, 67cc, 67d, 67e and 67n, in force from 1 October 2026. wetten.overheid.nl
• Belastingdienst, Paying tax interest on income tax, accessed 16 October 2026. belastingdienst.nl
• Ministry of Finance, Tax Plan 2027 bill, Budget Day 2026. Accessed 16 October 2026. rijksfinancien.nl
• SRA, Avoid tax interest with a timely return or provisional assessment, 7 April 2026. sra.nl
• Belastingdienst, Paying tax interest on corporate tax, accessed 16 October 2026. belastingdienst.nl
• Ondernemersplein (Belastingdienst), Requesting an extension for a tax return, accessed 16 October 2026. ondernemersplein.overheid.nl
• Besluit Bestuurlijke Boeten Belastingdienst (Tax and Customs Administrative Penalties Decree), paragraphs 21, 22, 23 and 25, in force from 8 August 2026. wetten.overheid.nl
• Belastingdienst, Collection interest, accessed 16 October 2026. belastingdienst.nl