New Tax Calculation Method for Box 3 Income in the Netherlands
Effective from 2021: Savings Variant Method
In 2021, the Netherlands introduced a new method for calculating Box 3 income, based on the savings variant. This change aims to align tax assessments more closely with actual returns on savings and investments.
Key Points of the New Method
Under the savings variant method:
- The amount of assets is no longer directly relevant.
- Returns on assets are calculated based on a fixed percentage, which varies depending on the type of investment.
- Capital gains and investment income remain taxable for both residents and non-residents.
Specific rates for the savings variant method have been established as follows:
- 80% on assets with values between 0 and 30,846 euros
- 180% on assets with values between 30,846 euros and 103,643 euros
- 422% on assets with values exceeding 103,643 euros
Implications for Capital Gains Tax
The introduction of the savings variant method does not affect the taxation of capital gains from the sale of assets such as stocks or property. However, it may lead to different outcomes when calculating Box 3 income for assets that generate returns.
Taxpayers should consult with a qualified tax professional to determine how these changes may impact their specific financial situation.
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