Increase in interest rates on unpaid income tax and VAT

Pursuant to the publication of Legal Notices 227 of 2022 Value Added Tax (Rate of Interest) (Amendment) Regulations and 228 of 2022 Income Tax (Rate of Interest) (Amendment) Rules, the increase in the rate of interest which is chargeable on unpaid VAT and taxes dues (from 0.33% to 0.6% for every month of part thereof), shall be applied with effect from the 1st of September 2022.

For any unpaid VAT which is payable before the 1st September 2022, the interest rate of 0.33% shall continue to apply whilst for income taxes falling due after the 31st of August 2022, the new rate of 0.6% per month shall apply.

Should you require further information feel free to contact our dedicated tax teams on [email protected]