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Netherlands to impose 36% tax on unrealized gains starting in 2028, crypto and stock investors face cash flow challenges
February 13 News, the Dutch House of Representatives passed the "Third Pillar Actual Yield Act" (Wet werkelijk rendement box 3) this week, planning to reshape the country's investment tax system starting January 2028. The new system will tax the "actual yield" of most investment assets such as stocks, cryptocurrencies, bonds, and others, at an approximate rate of 36%. This means that even if investors have not sold their assets, they are still required to pay annual taxes on unrealized gains.
Under the current framework, taxes are largely based on assumed rates of return, whereas the new legislation will directly tax actual returns. This change is seen as a significant shift in the Dutch tax system. For highly volatile cryptocurrencies, the mechanism of taxing unrealized gains could lead to noticeable liquidity pressures. Some community members warn that if the market experiences a correction, investors may face the risk of their paper profits being rapidly eroded after paying taxes.
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