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Chaos over box 3 deepens: coalition delays decision, repairs halted for now

Chaos over box 3 deepens: coalition delays decision, repairs halted for now

The Dutch coalition government has delayed a critical tax reform for box 3 assets, potentially costing the state 2.4 billion euros annually. Disagreements over the taxation of unrealized capital gains have stalled legislative progress, making the original 2028 implementation target increasingly unlikely.

The Dutch government has delayed its decision regarding a planned tax reform for box 3 assets, as coalition partners remain divided over the proposed system. State Secretary Eelco Eerenberg had aimed to introduce a repair bill this summer, but disagreements between parties like the VVD, CDA, and D66 have stalled the process. The core of the dispute involves the proposed tax on unrealized capital gains, which faces significant political resistance.

By shelving the current legislative proposal, the government effectively postpones a resolution until 2028, leading to potential annual losses of 2.4 billion euros for the treasury. There is growing concern that the originally scheduled 2028 implementation of the new system is no longer feasible. Officials are now considering a shift toward a capital gains tax, where taxes are paid only upon the realization of profit. However, the Tax and Customs Administration has indicated that such a transition might not be technically possible until at least 2032, leaving the government's fiscal strategy in a state of uncertainty.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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