“Box 3” levy on basis of actual yield continues for now to be a pipe dream

One of the plans included in the current Dutch cabinet’s coalition agreement relates to “Box 3” tax being levied on the basis of actual yield rather than on that of notional yield, as is currently being done. Having announced in February 2018 that he would brief the Lower House by the spring of 2018, the State Secretary for Finance in reply to parliamentary questions on the subject has now made it known that he will be needing more time to work up a proposal for levying investment yield tax based on actual yield. Such a new system – in addition to entailing tax avoidance risks – would have major consequences both for the administrative burden on citizens and in terms of feasibility. The State Secretary’s proposed time line for all this has to date remained under wraps.

Dutch version: Box 3-heffing op basis werkelijk rendement nog ver weg