In our earlier video “Taxes not paid” we talked about what happens if you don't pay your taxes on time. In this video we explain what you can do as an entrepreneur if you find out that you cannot pay your taxes on time.
The first possibility is that you request deferral of payment. This is quite easy nowadays. By telephone you can request a 4-month extension from the Tax Authorities. If you need longer, you can request a postponement of payment in writing for a maximum of 12 months, but it is often required that you provide a security. This can be, for example, a valuable car or equity on your home or business premises. It is important to take into account that you owe interest. Payment deferment is therefore not available “for free”. It is also important that you meet your current obligations. You will only be deferred for taxes that have not been paid so far, not for future taxes. You can also make a proposal for the payment arrangement directly on the postponement form. There you can indicate how many months you want to pay off the debt. The Tax and Customs Administration will then check whether they can agree to the request for deferment of payment and the payment arrangement.
But what if you cannot pay your taxes at all and a payment arrangement is not a solution either? Then you should think in the direction of a remission request. Do you want to know more about this? Then read our column "Tax Liability, remediation or not?" by Kelly Vink.