Dutch financial authorities have revealed that the reform bill to tax unrealized gains on crypto, stocks, and other investments will be revised following criticism from lawmakers and local investors.
Dutch Finance Minister To Revise Tax Overhaul
On Wednesday, the Minister of Finance of the Netherlands, Eelco Heinen, announced that the recently passed bill to tax unrealized gains on crypto and other assets will be reviewed and amended to address multiple concerns brought by the Senate and crypto investors.
“I don’t think the law can go through as it stands,” Heinen told local news outlet RTL Nieuws. “I think something has simply gone wrong here, and the current law needs to be amended.”
The Netherlands plans to overhaul its tax system on January 1, 2028. The proposed system, known as the Actual Return in Box 3 Act, is set to tax investors 36% on the change in value of their crypto and other assets each year, even if these have not been sold.
According to the report, the Dutch finance minister noted that there’s still time to amend the controversial tax overhaul, as it will not be enacted until 2028.
Moreover, he revealed that he has already discussed the bill’s upcoming revision with his state secretary, adding that they are set to examine the legislation and potential amendments with lawmakers.
“We have agreed that we will go back to the drawing board, engage in discussions with the House of Representatives and the Senate, and see how we can amend the law,” he stated.
Heinen also opened the door to a complete rewrite of the crypto tax bill if amendments in certain areas don’t suffice to address the concerns. Nonetheless, he shared that he doesn’t yet know which option will be necessary as they are “just going to have the conversation.”
The Unrealized Crypto, Stock Gains Tax Debate
The new system has been heavily criticized by local investors, who have expressed concerns about being unfairly taxed on their crypto and other assets. Some have argued that the legislation could push wealth out of the country, as crypto investors and other high-net-worth individuals could consider relocating to other jurisdictions with friendlier tax frameworks.
Under the new Box 3 system, the government will calculate tax by comparing the value of an asset at the beginning and end of the year, and the income earned during this period. As a result, both realized and unrealized gains on cryptocurrencies, stocks, bonds, and similar investments will be included.
Only real estate and shares in startups will be exempt from the new system, as they will be taxed when profit is made. Meanwhile, income from these assets will continue to be taxed in the year it is received.
For context, the old Box 3 system taxed investors based on the assumed returns of assets, a practice the Supreme Court ruled unfair and unsustainable after the Dutch state lost several court cases, with every year of delay costing the treasury hundreds of millions, RTL Nieuws detailed.
Since then, lawmakers have been developing the proposed new model that they consider more accurate. However, some reports noted that the government ignored previous concerns and still decided to advance the bill with some adjustments.
Notably, the Dutch House of Representatives passed the legislation two weeks ago, advancing it to the Senate for consideration. RTL Nieuws highlighted that the Dutch Senate, which has yet to discuss the reform plan, also shares similar concerns as investors.
Bitcoin (BTC) trades at $66,445 in the one-week chart. Source: BTCUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.