The Dutch government has delayed the introduction of a new tax system for savings and investments (Box 3) by one year, now aiming for implementation in 2028. This decision follows critical feedback from the Council of State on the existing proposals.
In a letter to the House of Representatives, State Secretary Van Oostenbruggen stated that additional time is needed to develop sound legislation.
To ensure adequate tax revenue in the interim, the wealth tax will increase from 2026 for certain groups, specifically individuals with shares, real estate, and cryptocurrencies. The government expects to raise approximately €2.5 billion through this measure. According to the Ministry of Finance, people with primarily savings will not pay more in wealth tax.
The quest for a new approach began after the Supreme Court ruled in 2021 that the existing tax on presumed returns was unlawful. The current system taxes savers and investors based on a fictitious return on their assets, which has often resulted in savers paying more in taxes than they earned in interest.
An earlier proposal to tax actual returns from 2025 was rejected by the Council of State, citing concerns over increased complexity and potential strain on the Tax Authority's services and oversight capabilities.
As a temporary solution, the government will continue to tax based on a fictitious return. However, taxpayers who disagree with the assessment can request a refund by providing documentation to prove they were overcharged. This arrangement is expected to remain until the new system is introduced in 2028.
Source: NOS Nieuws