The roughly 60,000 people who objected to paying too much savings tax will have their overpayments refunded, State Secretary Marnix van Rij said in a letter to parliament. This compensation will cost approximately 2.8 billion euros. Cabinet awaits another Supreme Court decision before deciding whether and how to compensate the hundreds of thousands of savers and investors who did not file an objection to the savings tax they paid , reports RTL Nieuws.
The 60,000 people who are now receiving compensation have filed a claim with the tax authorities against savings tax, or capital gains tax, in the past. Some of these objections have been submitted to the court to determine whether compensation is warranted. This eventually led to the Supreme Court ruling that the government must refund overpaid savings tax.
The problem with the savings tax was that the tax authorities used a fictitious return to calculate the tax. But because interest on savings has been historically low in recent years, sometimes even plunging into negative interest, savers have been paying taxes on returns they never received. For the 60,000 opponents, the tax administration will perform a savings tax calculation on their actual declarations, and the overpaid amount will be refunded.
If this method is also used on people who have not objected, the Cabinet will have to spend around 6.8 billion euros in compensation, according to the broadcaster. If large investors are also compensated, this amount could increase to almost 12 billion euros.