Interest on tax arrears - will there be an increase?

Co-Size-Changing

On October 6, 2021, the Monetary Policy Council held a meeting. For the first time in several years, a decision was made to raise interest rates. Will interest on tax arrears increase as a result? Let's check what the interest rate hike will result in!

How much will the new interest rates be?

The Monetary Policy Council established an increase in interest rates. The change took effect on October 7, 2021. The table below shows what the new interest rates are:

Interest rate

The amount of the interest rate

NBP reference rate

0,5%

deposit rate

0,00%

rediscount rate

0,51%

discount rate for bills of exchange

0,52%

Lombard rate

1,00%

Interest on tax arrears

The interest on tax arrears applies to those taxpayers who did not meet the applicable tax deadlines. Their amount is calculated on the basis of the lombard rate. The interest on tax arrears is calculated using the formula:

2 x lombard rate + 2%, i.e. 2 x 1.00% + 2% = 4%

Will the interest on tax arrears be lower?

Pursuant to Art. 56 § 1 of the Tax Ordinance: "The rate of late payment interest is equal to the sum of 200% of the basic interest rate on the lombard loan, determined in accordance with the provisions of the National Bank of Poland, and 2%, but this rate may not be lower than 8%". So the interest on tax arrears will not change and will still be 8%. The reduced 50% interest and the increased 150% interest will not change either.

Interest on tax arrears effective from 01/01/2016

INTEREST

REDUCED INTEREST 50%

HIGHER INTEREST 150%

8,0%

4,0%

12,0%