Capital Income Taxation in the Netherlands

By Alexander D Klemm, Shafik Hebous, Christophe J Waerzeggers

May 20, 2021

Preview Citation

Format: Chicago

Alexander D Klemm, Shafik Hebous, and Christophe J Waerzeggers. Capital Income Taxation in the Netherlands, (USA: International Monetary Fund, 2021) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper looks at capital income taxation in the Netherlands from an international and domestic perpective. The Netherlands is a major conduit country for FDI. Recent reforms taken by the Dutch authorities as well as public statements represent a strong move to address international tax avoidance, but it is too early to be able to detect the impact in the data, and measuring tax avoidance even in the past is fraught with difficulties. Domestically, the unique system, which for many financial assets effectively taxes wealth rather than capital income, leads to inequities and distortions. Owner-occupied housing is strongly tax-favored and in many cases effectively subsidized. Various reforms, not necessarily of a fundamental nature, would improve efficiency and equity.

Subject: Economic sectors, Financial crises

Keywords: Debt Bias., International Tax, Netherlands, Schedular Tax

Publication Details

Pages:

41
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/145
Stock No:

WPIEA2021145
ISBN:

9781513573441
ISSN:

1018-5941

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