Can I pay my income tax return in installments?

July 25, 2022

Can I pay my personal income tax return in installments?

Have you just filed an income tax return and can't manage to pay everything right away? Then you are certainly not the only one. Many entrepreneurs struggle financially now and then. That is why you can sometimes get a payment plan from the tax authorities.

What is the payment arrangement?
With the tax authorities, you can apply for a payment schedule. There is a payment schedule for 4 months and for 12 months. For the 12-month payment schedule, the government wants sufficient security that you can eventually pay the amount. This can take the form of a bank guarantee, a mortgage lien or a pledge. For the 4-month payment arrangement, no form of guarantee is required, but you must meet some conditions.

What are the conditions for a 4-month payment arrangement?

  1. You have always filed a proper tax return, i.e. on time and in full.
  2. You do not have any outstanding assessments for which you have received a writ of execution.
  3. You have not been granted an extension of payment before.
  4. Your total outstanding debt to the tax authorities is less than €20,000.
  5. You have already received a final assessment. A payment arrangement for a provisional assessment is therefore not possible.

The payment arrangement can be very useful to apply for when you are just not able to pay.