Prince Constantijn is strongly critical of the new box 3 system that should come into effect in 2028. According to Techleap’s special envoy, the Netherlands shows that investors and international talent should stay away.
He points out that the plans are also causing a stir outside the Netherlands. Elon Musk previously reacted critically to the idea of taxing paper profits.
What will change in box 3 from 2028
Last week, the House of Representatives approved a new system for box 3, the tax on savings and investments. Instead of a fictitious return, we will soon look at the actual increase in the value of assets.
This means that savings, investments and crypto will be subject to an annual capital growth tax: 36% on the actual return, including unrealized increases in value.
An exception applies to a second home and shares in start-up companies: increases in value are only taxed upon sale. For a non-rented second home, an annual real estate addition of 3.35% on the WOZ value is added.
The new system is more complex than the old one. Investors, including those with crypto, need to keep better track of their returns.
‘Don’t come’
In WNL Op Zondag, Constantijn called the new system “shooting yourself in the foot”. His main objection is that people may have to pay tax on increases in value on paper, while they often cannot yet cash in on that value.
He mainly mentions employees who receive shares as a reward. For young companies, this is a way to attract talent when there is still little cash. If those shares subsequently become more valuable on paper, this could lead to problems, according to Constantijn. People may have a paper profit, but not the money to pay the taxes.
According to him, this has an impact on the business climate. “The signal you get is: don’t come, the Netherlands is not open for business,” he warned.
Musk was critical before
Constantijn also pointed out in the broadcast that the subject is being followed internationally. Elon Musk has previously been critical of the plans for taxing unrealized profits. In messages circulating on X, Musk responded mockingly to the idea of paper profits being taxed.
Things also remain politically unsettled
It is striking that doubts are visible again immediately after the approval of the new system. During the debate, a motion was adopted calling for an investigation into whether box 3 could not be better levied on actual profits. Constantijn calls it “remarkable” that a new system is adopted and at the same time the next change is being aimed for. According to him, this creates additional uncertainty among entrepreneurs and investors.
Source: https://newsbit.nl/prins-constantijn-haalt-uit-naar-nieuwe-box-3-nederland-is-not-open-for-business/
