3 ms·

It’s the same in the Netherlands. Instead of counting how much you earn from your capital, the tax administration estimates that you earn about 5% and taxes yo

It’s the same in the Netherlands. Instead of counting how much you earn from your capital, the tax administration estimates that you earn about 5% and taxes you on that (about 30% iirc). But hey, if you make above their estimation, you don’t pay extra. But if you don’t invest, you still pay... I really like how simple it makes the tax calculation (at least when you know how to value your assets).

mettamage 7y ago
It has changed in NL. It used to be 1.2% (it used to be 30% of 4%, I believe, but it was a bit before my time) on the value of all your assets (so what you said), but now they have a progressive system because the assumption that you make 4% on your investments has changed, the 30% stayed the same. Their assumption changed to: if you have less money you have relatively more money on the bank. The actual calculation is a mix from all the brackets. E.g. if you have 1 million euro, then 71.650 is taxed at 0.58%, the bulk at 1.33% and a bit at 1.68%. The progression goes as follows (I'm too into this apparently, forgive me): ----- BRACKET 1 ----- Until € 71.650 You save: 67% @ ROI of 0.13% You invest: 33% @ ROI of 5.6% Average ROI: 1.935% Taxed: 1.935 * .3 = 0.5805% ----- BRACKET 2 ----- from € 71.651 until € 989.736 You save: 21% @ ROI of 0.13% You invest: 79% @ ROI of 5.6% Average ROI: 4.451% Taxed: 4.451 * .3 = 1.3353% ----- BRACKET 3 ----- From € 989.737 to infinity and beyond You save: 0% @ ROI of 0.13% You invest: 100% @ ROI of 5.6% Average ROI: 1.935% Taxed: 5.6 * .3 = 1.68% Source (Google Translate works relatively well): https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/vermogen_en_aanmerkelijk_belang/vermogen/belasting_betalen_over_uw_vermogen/grondslag_sparen_en_beleggen/berekening-2019/ https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/...
C1sc0cat 7y ago
Can the Dutch Tax Authorities show me where I can with relative safety make 5% ? my 5 figure portfolio (uk) returns about 3.4% income. Its also odd that if say you get a ten bagger and turn 5k into 50k for a 45k capital gain you don't pay tax on that capital gain. It would make sense and be firer to tax income and capital gain different and on actuals.

mettamage 7y ago

It has changed in NL. It used to be 1.2% (it used to be 30% of 4%, I believe, but it was a bit before my time) on the value of all your assets (so what you said), but now they have a progressive system because the assumption that you make 4% on your investments has changed, the 30% stayed the same. Their assumption changed to: if you have less money you have relatively more money on the bank. The actual calculation is a mix from all the brackets. E.g. if you have 1 million euro, then 71.650 is taxed at 0.58%, the bulk at 1.33% and a bit at 1.68%. The progression goes as follows (I'm too into this apparently, forgive me): ----- BRACKET 1 ----- Until € 71.650 You save: 67% @ ROI of 0.13% You invest: 33% @ ROI of 5.6% Average ROI: 1.935% Taxed: 1.935 * .3 = 0.5805% ----- BRACKET 2 ----- from € 71.651 until € 989.736 You save: 21% @ ROI of 0.13% You invest: 79% @ ROI of 5.6% Average ROI: 4.451% Taxed: 4.451 * .3 = 1.3353% ----- BRACKET 3 ----- From € 989.737 to infinity and beyond You save: 0% @ ROI of 0.13% You invest: 100% @ ROI of 5.6% Average ROI: 1.935% Taxed: 5.6 * .3 = 1.68% Source (Google Translate works relatively well): https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/vermogen_en_aanmerkelijk_belang/vermogen/belasting_betalen_over_uw_vermogen/grondslag_sparen_en_beleggen/berekening-2019/ https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/...

C1sc0cat 7y ago

Can the Dutch Tax Authorities show me where I can with relative safety make 5% ? my 5 figure portfolio (uk) returns about 3.4% income. Its also odd that if say you get a ten bagger and turn 5k into 50k for a 45k capital gain you don't pay tax on that capital gain. It would make sense and be firer to tax income and capital gain different and on actuals.