연합뉴스46 minutes agoBusiness2 min readSouth Korea

Netherlands withdraws plan to tax unrealized profits... Switch to regular capital gains tax

Quick Look

The Dutch government withdrew its plan to tax unrealized profits such as stocks and virtual currencies, and decided to introduce a general capital gains tax that applies a 36% tax rate only to actual realized profits.
The new tax system will apply to stocks, bonds, and second homes from 2028, and to virtual currency and foreign currency profits from 2030, and it is unclear whether it will pass due to the coalition government's failure to secure a majority of seats.

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Why It Matters

The Netherlands previously implemented a standard yield-based wealth tax, but this was invalidated by the Supreme Court in 2021. Since then, the government has been pushing for taxation based on actual profits, and the plan to tax unrealized profits has sparked strong opposition from investors.

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(Seoul = Yonhap News) Reporter Ko Il-hwan = The Dutch government withdrew its plan to impose taxes on unrealized profits from various assets.

According to the British daily Telegraph on the 30th (local time), Dutch Prime Minister Rob Yetton said in a letter to lawmakers, "I accept the criticism of parliament."

The taxation of unrealized profits, promoted by the Dutch government, is a method of imposing taxes on the amount of the increase in valuation of stocks or virtual currency, etc., by considering it as profit even if the stock or virtual currency has not been sold.

Investors have strongly opposed the plan, saying that if they run out of cash, they may have to sell their assets to pay taxes.

Accordingly, concerns were raised that investors would flee if taxation on unrealized profits were introduced.

In the end, Prime Minister Yeaton changed course to introduce a general capital gains tax, applying a 36% tax rate only to profits actually realized.

The new capital gains tax will apply to stocks, bonds and second homes from 2028.

Profits arising from virtual currencies and foreign currencies will be taxed from 2030.

However, it is unclear whether the tax reform plan will be passed as the coalition government to which Prime Minister Yetton does not secure a majority of seats in parliament.

The opposition party is expressing concern that the capital gains tax could still increase the tax burden on small investors.

In the past, the Netherlands imposed a type of wealth tax by applying a standard rate of return set by the government regardless of investors' actual profits.

However, the Dutch Supreme Court invalidated this system in 2021, and the government has since pursued a plan to tax unrealized profits based on each investor's actual profits.

What to Watch

AI outlook — possibilities, not facts

There is a possibility that the tax reform bill will be passed with amendments even though the Dutch coalition government does not secure a majority of seats.
Possible · Within months
Investors are likely to increase their investments in stocks and real estate in the near term following the announcement of a rollback of unrealized taxation.
Likely · Within weeks

Open Questions

Will the tax reform bill actually be passed without the coalition government securing a majority of seats?
Whether the tax burden on small investors will actually increase as the opposition party fears
Will taxation be implemented as scheduled in 2028 and 2030?

Netherlands withdraws plan to tax unrealized profits... Switch to regular capital gains tax

Quick Look

The Dutch government withdrew its plan to tax unrealized profits such as stocks and virtual currencies, and decided to introduce a general capital gains tax that applies a 36% tax rate only to actual realized profits.
The new tax system will apply to stocks, bonds, and second homes from 2028, and to virtual currency and foreign currency profits from 2030, and it is unclear whether it will pass due to the coalition government's failure to secure a majority of seats.