Fines and interest for late payment

Please note!
Due to the effects of Covid-19 Ministry of Finance and Transfers has decided to suspend calculation of fines and interest on tax assessed 2020, until December 31.

This means that for payments that are made later than the due dates, June 30 and September 30 calculation of interest and fines will not be applied until January 1, 2021.

Please observe! The suspension of fines and interest applies only for tax assessed 2020. For debts from previous years, interest will still be applied for every additional month of non-payment.

If your payment is late, you will be charged fines and interest.

If your payment is late, you will have to pay:

  • fine of 10% of the unpaid tax
  • An interest of 0.65% of the unpaid tax for every month of delay.

For debts interest will be continuously added for every new month of delay.

Example 1: Installment 1 paid in September

Assumptions

Total tax assessed: 60 € (divided into 2 installments)
Tax to pay April 30: 30 €
Tax to pay September 30: 30 €
Interest rate: 0.65% on upaid tax
Fines: 10% on upaid tax

In this example installment 1 is paid on September 30, that is 5 months of delay. Interest will be applied for 5 months.

Calculation of fines and interest

Fines: 3.00 € (30 € * 10%)
Interest: 1.00 € (30 € * 0.65% * 5 months)
Total: 4.00 €

The tax to pay is 30 €, but due to late payment the amount to pay is 34 €.
The way interest and fines is calculated is also shown in this table:

Interest 0.65% on unpaid taxFine 10% unpaid tax
May0.20 € 3.00 €
June0.20 €
July0.20 €
August0.20 €
September0.20 €
TOTAL1.003.00 €

Total interest and fines 4.00 €.

Example 2: Installment 1 and 2 is paid on December 30

Assumptions

Total tax assessed: 60 € (divided into 2 installments)
Tax to pay April 30: 30 €
Tax to pay September 30: 30 €
Interest rate: 0.65% on unpaid tax
Fines: 10% on unpaid tax

In this example installment 1 and 2 is paid on December 30.

Calculation of fines and interest

Installment 1:
Fine: 3.00 € (30 € * 10%)
Interest: 1.60 € (30 € * 0.65% * 8 months)
Total: 4.60 €

Installment 2:
Fine 2: 3.00 € (30 € * 10%)
Interest: 0.60 € (30 € * 0.65% * 3 months)
Total: 3.60 €

The total extra cost for late payments in this case is 8.20 € (4,60 + 3.60).
The assessed tax is 60 € , but due to late payment the debt by December is 68.20 €.

The way interest and fine is calculated is also shown in the table below:

Installment1Installment2
Fine 10%Interest 0.65%Fine 10%Interest 0.65%
May3.00 €0.20 €
June0.20 €
July0.20 €
August0.20 €
September0.20 €
October0.20 €3.00 € 0.20 €
November0.20 €0.20 €
December0.20 €0.20 €
TOTAL3.00 €1.60 €3.00 €0.60

Total interest and fines 8.20 €.