Asset tax reforms face more delays for practical reasons
Cabinet plans to reform the asset tax on savings, investments and property to reflect actual rather than fictive returns are likely to be delayed yet again, tax minister Marnix van Rij has told the NRC in an interview.
The new system, already delayed one year, was set to be introduced in January 2026 but that deadline is unlikely to be met either for practical reasons, Van Rij told the paper.
The problem in changing the system is partly down to delays in modernising the tax office’s old IT systems, some of which date back 40 years. Logistical problems, including the consultation period and the 18 months needed to implement change will also contribute, he said.
The need to overhaul the system stems from a December 2021 ruling by the Supreme Court which said the government was wrong to impose a notional ‘flat rate’ savings and assets based on the assumption that savers would earn 4% on their investments.
In the meantime a transitional system has been brought in that still uses notional rates but distinguishes between savings, which are currently taxed at 0.01%, investments, which are subject to a variable rate of around 6%, and debts, where the rate is around 2.5%.
Earlier this month Dutch investors’ association VEB said it is taking legal action against the government’s decision to use a notional return of 5.5% to calculate the tax on assets over 2022, arguing the real figure is -14%.
‘The Supreme Court said the fictive return should be as close to the real return as possible,’ VEB director Gerben Everts said. ‘5.5% has nothing to do with the real income.’ So far, 1,100 VEB members have signed up to support the court case, which has now been opened to non members as well.
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