The tax chamber of the Court of Northern Netherlands ruled on November 7, 2024 (see link to the ruling below) that the tax interest for corporate tax charged by the Tax Authorities was too high. This ruling has now been confirmed in cassation by the Supreme Court.
Court: interest rate violates general legal principles
In first instance, the court found that the applied interest rate of 8% was insufficiently substantiated and violated the proportionality principle as a general legal principle. This percentage was twice as high for corporate tax as for other taxes. According to the court, the legislator did not provide good reasons for this difference in treatment.
Following the ruling of the Court of Northern Netherlands, a large number of objections have been submitted to the Tax Authorities. To manage this flow properly, the State Secretary for Finance has designated these objections as ‘mass objections’.Supreme Court: difference insufficiently justified
Appeal by cassation was filed against the courts ruling. On January 16, 2026, the Supreme Court (ECLI:NL:HR:2026:59) ruled that the higher tax interest for companies indeed violates general legal principles, including the proportionality principle. According to the Supreme Court, the difference with the lower tax interest applicable to other types of taxes such as income tax is insufficiently justified. Thus, the Supreme Court confirms the judgment of the Court of Northern Netherlands.
Consequences
The Supreme Courts ruling has far-reaching financial consequences for the Tax Authorities and may lead to adjustments in legislation. In many cases, recalculation of previously charged tax interest will follow.
Supreme Court press release
The Supreme Courts press release with more information can be found here You are leaving Rechtspraak.nl.
Rulings
- ECLI:NL:RBNNE:2024:4361ECLI:NL:HR:2026:59