Provisional income tax and corporate income tax assessments for 2018

The Dutch Tax & Customs Administration will, in principle, send businesses liable to corporate income tax or income tax a provisional tax assessment at the beginning of the year. A provisional tax assessment is a decision in which an estimate is made of the tax liability for a year. The estimated amount of tax payable is spread across the fiscal year. You may be granted a small tax cut if you pay the tax assessment for 2018 as a lump sum before 1 March. We would advise you to review mid-way through the year whether the estimate of the tax liability still corresponds to your expected revenue. The provisional tax liability is calculated based on the income your business generated in the fiscal year 2017 or 2016. The final tax liability, which is calculated at a later stage, will be based on income actually achieved.

If you expect your business to achieve a higher or lower profit than estimated in the provisional tax assessment you have received from the Dutch Tax & Customs Administration, you may want to request them to adjust the provisional tax assessment. If you have not received a provisional tax assessment, we can ask the Dutch Tax & Customs Administration to issue you one.

You may also request to receive a provisional tax assessment for 2017. By paying the tax liability for 2017 based on a provisional tax assessment before 1 July 2018, you can avoid having to pay 8% interest on tax due that will be payable on your tax liability from 1 July 2018 onwards.

Please contact your accon■avm adviser or send an email to international@acconavm.nl if you want to find out more about the options for a provisional tax assessment and/or avoiding interest on tax due.