The Dutch House of Representatives has approved a new tax system for savings and investments, known as box 3. Although the bill faced significant opposition, a large majority eventually voted in favour. Delays to this reform have already cost the state billions in lost revenue, and further delays would increase that financial burden.
Authorities expect the new tax system to begin in 2028. This change will ensure the government taxes actual asset growth rather than relying on estimates. This marks the end of a long political dispute over the current levy, which is based on assumed rather than real returns. Several court cases in which the State lost made it clear that the old system was no longer legally sustainable.
In the meantime, the government is using an emergency legal solution to maintain the wealth tax. High-net-worth individuals still pay tax on a so-called fictitious return, but they can receive a reduction if they prove their actual return was lower. This temporary method has significantly increased the workload for the Tax and Customs Administration.
Questions remain regarding the long-term future of the new system. The incoming cabinet must begin working on further reforms almost immediately after being sworn in. A majority in the House wants high-net-worth people to pay tax on profits only when they sell their investments, rather than on “paper” gains. A formal plan for this shift must be presented no later than Prinsjesdag 2028.
@anp | NEWS BRAINPORT
