July 6, 2022

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Already afraid of delaying the introduction of the intended successor of the savings tax |  Financial issues

Already afraid of delaying the introduction of the intended successor of the savings tax | Financial issues

This is evidenced by a technical briefing on the new wealth tax released by the Treasury on Monday in the House of Representatives. In their agreement to levy capital, the coalition parties have agreed on actual returns from 2025. House Finance Officer Jan Melson says the department is already “behind the original schedule.” “Despite extensive efforts, the new Framework 3 system faces significant challenges in implementing it in a timely and sound manner.”

Foreign Minister Marnix van Rijk (Finance) wants to introduce a so-called capital gains tax from 2025. In it, people pay tax on “income” already earned from their assets, such as interest and dividends. But also about the increase in the value of, for example, a portfolio of stocks or real estate.

Last fall, the Treasury conducted an investigation into whether this new wealth tax could be implemented from 2025, but more than a month later, the Supreme Court lowered the existing tax. This gives the tax authorities a lot of extra work: savers must be compensated and emergency legislation introduced so they can continue to collect tax.

These setbacks threaten to come at the expense of the timely introduction of the new digit 3 tax. The condition of the tight schedule, Melson says, is that “there will be no additional work.” “And by the judgment of the Supreme Court, we all know the extra work that was done in the six months.” Therefore, a new study will be conducted on the feasibility of planning.

In-room care

It worries the House of Representatives on Monday afternoon. “The schedule is still very tight,” said D66 Rep. Romke de Jong. What a “realistic time frame” is, Peter Umtzigt asks: “Are we still on the right track, or are we already blown away?” Civil servant Melsen cannot answer that question yet, but notes that other ICT reforms may have to stay in place until 2025: “If lower priority is chosen to be given to other activities, Sources Free. Then we really have to see if the remaining time frame is enough.”

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There are also concerns about a temporary emergency law being put in place in order to be able to levy a wealth tax until the transition to the new system. “There are drawbacks to this,” Groot says in response to questions from CU MP Pieter Grinwis. For example, investors can sell their investment just before the reference date and put the money into a savings account, where they have to pay less, then return it immediately. And with the temporary legislation, there is also the risk of lawsuits, because investments are valued at the same value regardless of their actual return. “There is still a legal loophole,” says civil servant Groot. “So having this continue for two or three years is also a black box.”