The Deputy Minister of Finance in early September 2019 announced that a bill would be presented before the summer of 2020 to amend the taxation of income from savings and investments in Box 3.
According to initial calculations, taxpayers with savings only would, in effect, no longer pay tax on their savings on amounts up to a threshold of approximately €440,000. The new regime is proposed to be effective 1 January 2022.
The change was prompted by the sharp fall in interest rates on savings accounts in recent years and the subsequent widely felt need in society to bring the Box 3 tax more in line with the actual savings returns earned by individual taxpayers. The proposal would use the actual ratio between a taxpayer’s savings, investments, and debts. A fixed interest rate on savings would be set (and in line with the most recently available (average) savings interest rate) and would be lower than the presumed return on investment.
Taxpayers with savings only would, in effect, no longer have to pay tax on their savings up to approximately €440,000, but this amount would probably change in 2022. Furthermore, investors with assets less than approximately €30,000, and who now pay no tax, would also not pay tax in the future. For those who pay tax, the tax rate would be approximately 33%.
The Deputy Minister indicated that the proposal would be worked out in a bill that would be sent to the Lower House before the summer of 2020.
Read a September 2019 report prepared by the KPMG member firm in the Netherlands
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.