The importance of a correct provisional assessment 2018
In early 2018, provisional income and corporation tax assessments were imposed. If an additional payment still has to be made on the final assessment 2018 (and the provisional assessment was therefore too low), tax interest will be charged on the amount to be paid as from 1 July 2019. For income tax purposes, an interest rate of 4% will be charged. For corporate income tax still an interest rate of no less than 8%.
If a request is made before 1 May 2019 to amend a provisional assessment, this will, in principle, be imposed before 1 July 2019 (date of commencement of possible tax interest).
In order to avoid tax interest, we will review our client files in March to check, where possible, the correctness of provisional assessments imposed in 2018. However, it is impossible for us to determine all provisional assessments correctly, as we often do not (yet) have all the information at our disposal. That is why we urgently request our clients (herewith) to contact us in March if they feel that provisional assessments have not been imposed to the correct amount.
WOZ decision 2019
Around this time, the municipality will send you the WOZ decision for 2019 (value date 1 January 2018). The WOZ value is an important factor for various (tax) regulations. For example, the WOZ value is important for the owner-occupied home allowance in box 1 and for the valuation of a second home in box 3. For gift and inheritance tax, the WOZ value also plays a role. In the case of companies, the WOZ value serves as a benchmark for the extent to which the property can be depreciated.
Check the WOZ decision carefully. If the WOZ value appears to be too high, file an objection within 6 weeks of the date of the assessment notice.
When entering into a new interest rate contract with the bank, the bank will look at the amount of the WOZ value, among other things. A lower WOZ value may in that case be disadvantageous. In that case, we advise you to have a valuation report drawn up. In principle, the costs of the valuation report required for entering into a new interest rate contract are deductible in your income tax return.
If the value of the home has increased compared to the time the mortgage loan was taken out, we advise you to ask your bank to reduce the risk surcharge on the mortgage loan.