A group of deputies plans to impose a wealth tax on property that does not apply to tax Boxes 1 and 2 of the income tax. The deputies consider the fight against inequality to be the reason for their proposals, and the decision of the Supreme Court of December 24, 2021 was the direct factor that prompted the deputies to prepare the bill. In this decision, the court established the right to compensation for those taxpayers who can prove that the return on their capital was lower than according to the data used by the tax authorities when calculating tax. The initiators of the bill are concerned that salaries in the Netherlands are taxed more than capital income.
The deputies propose to take as a basis the methods of taxation of capital, characteristic of tax Box 3. However, they propose to tax not income from capital, but capital itself. The initiators of the bill believe that this is how a full-fledged wealth tax will be created. Currently, such government fees are included in Box 3 of income tax.
The amount of capital, as now in Box 3, is proposed to be determined by the formula: assets minus debts.
The tax base, according to the initiators of the bill, should include:
- Savings in banks
- Cash,
- Cryptocurrencies,
- Investments,
- The property,
- Other valuable property (jewelry, art, etc.).
It is proposed to apply a progressive tax rate:
- With a capital amount from 100 to 500 thousand euros - 1%,
- From 500 thousand to 1 million euros - 2%,
- From 1 to 2 million euros - 3%,
- From 2 to 5 million euros - 4%,
- Over 5 million euros - 5%.
It is proposed to exempt from the wealth tax the house in which its owner-taxpayer lives. In addition, capital up to 100 thousand euros per person will not be taxed. The initiators of the bill believe that in this way the really rich will be taxed, and the majority of the Netherlands will not be affected by the new tax at all.
Find out more about the Dutch government's plans to amend Tax Box 3 from our video.
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Publication Date: 17.08.2022
