The VVD wants to prevent Dutch startups from succumbing to the planned wealth tax reform. Today, attorney Techleap warned about the effects of the so-called capital gains tax in Box 3: It would be disastrous for the funding of innovative start-ups and scale-ups.
The reason why State Secretary Marnix van Rij for Finance wants to introduce this capital gains tax is because he has to find a solution for defective box 3, according to political journalist Leendert Beekman. The effectiveness of box 3 collapsed in 2021 after the Christmas ruling, with the Court of Cassation annulling the capital gains tax.
‘Box 3 must be done, and the question is how’
Under this levy, savers, among others, had to pay a return on capital that wasn’t there, Beekman says. «So it’s a fictitious purchase», he says, «because the saver has not received interest on his assets. And now it has to be done, and the question is how.”
Growth tax
The Cabinet is flirting with introducing capital gains tax as a permanent replacement for Box 3, says Beekman. “And with that, the government not only directly taxes the income from the activity, but also the development of value that has not yet been realized. A very complicated story.”
However, Van Rij still doesn’t share concerns about the effect of the planned reforms on startup funding. The undersecretary of state believes that it is still too early and that ‘something is expected that has not yet been fully clarified’. He thinks it’s good that the proposed plans are being scrutinized, but “the law isn’t in place yet and there’s still enough time and space to scrutinize the startups’ position.”
Value development
According to Beekman, when the shares increase in value, while the shareholder has not yet cashed them, the tax must be paid on this development in value. “And if you don’t have that money, say for employees who received stock as paycheck, then you have a problem,” says Beekman. “And often you can’t even sell them in the meantime; so there must be a solution for that.’
VVD deputy Folkert Idsinga believes that the patience requested by the Secretary of State is partly justified. “We also want to bring the ship safely to port, but you will have to choose a solution,” he says. “And I think it would be wise for us to think about it now.”
Income tax
Ideally, Idsinga would like to see taxes collected under the new system based on “real returns,” “and not the way we used to base taxes on fictitious returns,” he says. “Now we’re really going to look at what the capital income was, and there’s two ways to do that.”
Ultimately, the points of view are the same, says Idsinga. ‘This is the good of it. By itself, the choice doesn’t have to be political or complicated,” she says. (…). “The big difference is that the capital gains tax is a tax that also applies to paper profits, i.e. unrealized capital gains. While the capital gain variant, which I am in favor of, has nothing to do with it».
According to Idsinga, it only takes effect when profits are actually made, “and therefore actually appear in the account.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
