Interest and Linkage
Late payment of tax advances results in interest charges (approximately 4% per year) and CPI linkage from the due date. These accrue automatically and are calculated in the final tax assessment.
Deficit Penalty
If total advances paid during the year are less than 90% of the final tax liability, a deficit penalty (knas gireon) of approximately 4% per month is charged on the shortfall. This is in addition to regular interest and linkage. The penalty can be substantial for significant underpayments.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.