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Dutch Policy is an independent English-language publication for longer-form analysis of Dutch public policy, politics, public finance, housing, taxation, agriculture, climate, infrastructure, and related debates.

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What should Box 3 actually tax?

Annual taxation of paper gains is precise for listed portfolios and easier to prefill. Yet dividing assets between annual accrual and realization creates a permanent tax boundary across investments, wrappers, and legal forms. Box 3 should generally tax cash returns when received and capital appreciation when sold or otherwise realized, while Parliament treats the transition from today's stopgap as a separate fiscal and administrative problem.

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What should Box 3 actually tax?

Annual taxation of paper gains is precise for listed portfolios and easier to prefill. Yet dividing assets between annual accrual and realization creates a permanent tax boundary across investments, wrappers, and legal forms. Box 3 should generally tax cash returns when received and capital appreciation when sold or otherwise realized, while Parliament treats the transition from today's stopgap as a separate fiscal and administrative problem.

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