Supreme Court: 8% corporate tax rate declared inbinding

TLDR Corporate tax payers no longer have to pay 8% tax interest.

On 16 January 2026, the Supreme Court ruled that raising the tax interest rate to at least 8% for corporate income tax is contrary to the law. This selective interest rate increase is contrary to the principles of proportionality and equality and should remain inapplicable. In concrete terms, this means that the corporate tax rate for the years 2022/2023 will be reduced to 4%, the same percentage that applied to other taxes. As a result, many companies can claim a refund of overpaid interest, while the tax authorities are taking into account a significant loss (estimated €1.3 billion for the treasury). Below, we explain this statement and discuss the consequences and opportunities for entrepreneurs.

Background: why 8% tax rate for the Vpb?

Tax interest is the interest that the tax authorities charge if an income or corporate tax (Vpb) assessment is determined late or too low. The system is intended to prevent taxpayers from being able to defer or underpay “interest-free” with the tax authorities, and vice versa to compensate them if the tax authorities pay back too late. Until 2014, the interest rate for all taxes was equal to the statutory interest rate for non-commercial transactions (consumers), with a minimum of 4%. However, from 2014, the legislator decided to link the corporate tax rate to the higher statutory commercial interest rate (which applies in trade) with a minimum of 8%. This increase was mainly motivated by budgetary motives — it provided the treasury with additional income — and was supposed to serve as an additional incentive for companies to file a tax return on time and correctly.

During the COVID-19 pandemic, the tax rate was temporarily reduced (even to 0.01% in 2020) to accommodate taxpayers. However, as of 1 January 2022, the old situation prevailed again and the VPB rate became 8% again, while the lower rate (statutory interest rate for non-trade transactions, at least 4%) remained in force for other taxes. This discrepancy between corporate taxes and other taxes led to a lot of criticism from the business community and the tax community. Entrepreneurs — especially SMEs and family businesses — felt disadvantaged by paying twice as high interest as private individuals in income tax, without clear justification.

A concrete case filed with the Northern Netherlands District Court in 2024: a BV was charged 8% in a provisional Vpb assessment for 2021. The court found that this selective interest rate increase was contrary to general legal principles, in particular the principle of proportionality (proportionality). The judge found that an entrepreneur's material tax debt is not comparable to a commercial claim, and found it unreasonable that only VPB payers should pay such a high interest rate. The provision in the Tax and Recovery Interest Decree (Bbi), which regulated 8%, was declared inbinding. This judgment was groundbreaking and caused a stream of appeals from other companies that had also been charged 8% interest.

The Supreme Court ruling

The Secretary of State for Finance went directly to the Supreme Court in leaping, given the large number of cases affected. The case was also considered a massive objection, so that the outcome would immediately apply to all comparable objections. On 16 January 2026, the Supreme Court declared the appeal unfounded and confirmed the court's line. In short, the highest court finds that the increase in the VPB tax rate to 8% is invalid. The relevant rule in the Bbi is contrary to the principles of proportionality and the principles of equality and therefore remains inapplicable.

The Supreme Court emphasizes that corporate tax payers are essentially equal cases compared to other taxpayers when it comes to tax interest. There is no reasonable justification for charging them a higher interest rate than others. While the formal law allowed the delegation to set different interest rates, such lower regulations must comply with general principles of good administration. In this case, the 8% measure primarily served a budgetary purpose — generating additional income — and lacked a substantively compelling goal that could justify such a heavy burden for corporate taxpayers only. An increase in taxes purely aimed at the treasury that selectively affects one group is disproportionately and in violation of the principle of equality, according to the Supreme Court.

Interestingly, the Supreme Court does not follow that the measure would be ultra vires (beyond jurisdiction) — formally, the decision maker remained within his margin of delegation — but rather tests materially for fairness and equal treatment. The government's argument that entrepreneurs can avoid high interest rates by requesting preliminary assessments in time or filing a correct declaration was also rejected. Even if a burden is theoretical preventable is, it should not be disproportionately heavy compared to the goal. The Supreme Court did not find sufficient justification for refunding VPB tax interest, especially since interest payments in the Vpb only occur sporadically.

Conclusion: The 8% rule is off the table. For this specific case — and all similar cases — this means that the tax interest is recalculated at the general rate that applies to other charges. In the years 2022 and 2023, this was 4% (minimum percentage for non-trade transactions). This result ensures that there is no unjustified, selective increase in burdens for entrepreneurs.

Consequences and financial impact

This ruling has major financial and practical consequences for both companies and the government. For entrepreneurs who experienced a corporate tax assessment in 2022, 2023 or thereafter with 8% interest charged, an interest rate correction to 4% will in principle take place. Indeed, the tax authorities must reduce the overcalculated interest to normal levels in all current objection cases. As part of the mass appeal procedure, it was announced that a collective ruling on objections will be issued within six weeks and that the inspector will then have six months to reduce the interest on the relevant assessments. Companies that objected to the interest rate in time can therefore expect a refund of 4% interest rate differential over the period in question.

But what if you have not objected to a now final assessment with 8% interest? In that case, automatic reduction is not guaranteed. Because the Supreme Court has declared the rule unbinding, it could be argued that no one should be held to the 8% interest rate. Nevertheless, it is common for an assessment to be irrevocably established without timely objection. There are still options to request an ex officio reduction from the tax authorities, citing this ruling as a new fact. Our experience shows that the tax authorities in principle follow the line of mass objection; it is therefore advisable to seek individual advice on the chances of a refund if you were not affiliated with the collective procedure.

Looking ahead, corporate tax will now be subject to the regular interest rate, just like other taxes. This means: the statutory interest rate for non-trade transactions with a minimum (4% in 2022/2023, and a minimum of 4.5% under the new calculation method since 2024). The Supreme Court has explicitly noted that these percentages (including the minimums) are not unlawful. Entrepreneurs therefore do not have to expect tax interest to disappear completely — it remains important to file a timely return and keep preliminary assessments up to date to prevent interest. However, the interest rate that may be charged anyway has now been set at a fairer and lower level. This quickly saves half of the interest burden compared to the previous 8%. For many companies, this can mean hundreds to hundreds of thousands of euros in savings or refunds, depending on the size of the assessment and the interest period.

Contact us for advice

The Supreme Court ruling offers companies opportunities to save and recover any amounts previously paid. It's important not to miss out on money. Our tax specialists are ready to assess your situation. Do you have questions about what this ruling actually means for your company, or do you want to know if you are eligible for a tax interest refund? Please feel free to contact us for personal advice.

Location: Supreme Court January 16, 2026 (ECLI:NL:HR: 2026:59)