The Dutch government has postponed the introduction of a new tax system for savings and investments (box 3) to 2028 after severe criticism from the Council of State. State Secretary Van Oostenbruggen informed the House of Representatives that additional time is needed to develop proper legislation.
To ensure sufficient tax revenue during the interim, wealth taxes will increase for certain groups starting in 2026, targeting individuals with shares, real estate, and cryptocurrencies. The government aims to raise approximately 2.5 billion euros, but those with primarily savings will not face higher taxes, according to the ministry.
This action follows a 2021 ruling by the Supreme Court that deemed the current tax system unlawful due to its reliance on an estimated return, which often disadvantaged savers. The government decided that future taxes should be based on actual returns, a complex task requiring significant systemic changes.
Former State Secretary Van Rij’s plan to tax actual returns by 2025 was rejected by the Council of State, as it would complicate the tax system further and reduce service quality. In response, current State Secretary Van Oostenbruggen proposed a temporary solution where taxes continue to be based on estimated returns, but taxpayers can request refunds if they prove they’ve been overcharged.
This system is intended to last until 2028.
Source: NOS