Tax minister proposes capital gains tax to end assets legal row


Tax minister Marnix van Rij has published his proposals to reform the controversial box 3 asset tax, following a 2021 court ruling which said the current system is unacceptable. 

The proposals, which include the introduction of a capital gains tax, are currently open for public consultation and it will be up to the next government whether or not to implement them. 

The idea is to tax actual income from assets, such as dividends and rent, on an annual basis. However non-tangible wealth increases, such as rising property values, would be taxed when the asset is sold. 

Taxation experts have described the shift towards a capital gains tax on property and other assets as a good move, because it will end the annual discussion about how much property has gone up, or down, in value. 

In addition, small landlords will again be able to deduct the cost of running their properties, such as repairs, from the tax they have to pay on the rental income. Private homes would continue to be taxed on their official WOZ value. 

The Dutch Supreme Court ruled that the previous system, in which assets were taxed according to a fictitious rise in value, conflicted with EU rules. 

If adopted by the next government, the proposals will not come into effect until 2027 at the earliest. 

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