alt Hacker NewsThe title here mostly doesn't match the article right? Quote: "But unlike the capital growth tax, capital gains tax will, in principle, only be levied at the time of realisation. This is usually when the relevant asset is sold, but also when immovable property exits Box 3 for another reason, such as emigration."
Replies
Yeah but the previous paragraph says
> The bill regarding Box 3 introduces two main categories of taxation: capital growth tax and capital gains tax. The capital growth tax will apply to most assets, taxing both realised and unrealised returns, including appreciation in value and income from assets like shares, cryptocurrencies, and savings. Exchange results on bank balances in currencies other than EUR will also be taxed.
And normally unrealized capital gains on these sorts of assets aren't taxed.
I think in more general usage if you asked people what assets "taxing unrealized capital gains" would cover, you could get a basket if things like shares, real property, businesses, etc.
The article indicates that the Dutch government has decided to treat startups and real estate under the bucket "capital gains", and stuff under "capital growth".
So for an more informal standpoint, the title is a reasonable way to summarize what's happening to the layish person.
Ok, we've put box 3 in the title above. Thanks!
(Submitted title was "Netherlands to start taxing unrealized capital gains yearly from 2028")
As I understand it most things like stocks with be under the capital growth scheme, taxed yearly, but they left a carve out for real-estate where it only is levied at sale/realization time.
“The capital growth tax will apply to most assets, taxing both realised and unrealised returns, including appreciation in value and income from assets like shares, cryptocurrencies, and savings.”
Looks like they're coining a new legal term "Capital Growth Tax", under which they are going to tax unrealized capital gains. I'm not aware of any other country that taxes them like that (besides wealth/exit taxes), so maybe they're the world's first here!
Some countries have wealth taxes - but they are usually flat or scale with wealth, not the yearly increase in wealth. Note that currently NL does de facto have a wealth tax in Box 3 system - shares are presumed to have a fictional fixed yield of around 5-6% per year on which they charge you income tax, so it works out to about 2% wealth tax.