Netherlands: Consultation on new “Box 3” (wealth tax) regime

An internet consultation on a draft bill for new “Box 3” (wealth tax) regime to replace current regime launched

An internet consultation on a draft bill for new “Box 3” regime launched

The caretaker government on 8 September 2023 launched an internet consultation on a draft bill for the new “Box 3” (wealth tax) regime to replace the current regime. 

The Dutch Supreme Court (Hoge Raad) in December 2021 held that the current Box 3 tax regime for the years 2017-2022 was contrary to the European Convention on Human Rights (ECHR).

The general rule of the new regime is that taxation of assets that fall in Box 3 is based on the actual return on investment realized by the taxpayer on those assets. The draft bill does not specify what the new flat Box 3 rate will be; in the explanatory notes, budgetary impacts are calculated at rates of 33%, 35% and 37%.

A number of exceptions or nuances are provided to the general rule—relating in particular to the obligation to make an annual revaluation to fair market value—depending on the nature of the assets in question.

The public consultation will end on 20 October 2023.

Next steps

Although the next government will have to decide on the new form of Box 3, the outgoing government believes it desirable for the new regime to become effective in 2027. According to the outgoing government, the draft bill is intended as a building block and tool for a new government. What the actual Box 3 system will look like depends very much on the outcome of the next elections. In addition, the date of 2027 is not yet certain. The caretaker government has indicated that the final bill must be pending before the Lower House of Parliament by the summer of 2024 at the latest in order to meet this effective date. 

KPMG observation

The draft bill contains insufficient detail to determine whether and to what extent it meets the concerns already raised in the public debate about a capital growth tax.

Read a September 2023 report prepared by the KPMG member firm in the Netherlands


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