Heinen struggling to hit deadline for capital gains tax reform

Finance Minister Eelco Heinen faces a race against time to introduce a new capital gains tax system by his self-imposed deadline of 2028. Financial institutions have expressed concern over the feasibility of this timeline, warning that it could lead to delays, inaccuracies, and fraud. The government needs the support of at least two opposition parties to pass the legislation, as the minority government lost planned social security cuts in exchange for their backing.

The Council of State has stated that it will be impossible to have its analysis ready by October 12, with October 19 being the earliest realistic date for debate. Dutch banks and the Council of State doubt Heinen's timetable, as IT system adaptation for the new tax system is necessary. The tax office is also under pressure to update its systems to accommodate other reforms, including compulsory work incapacity insurance for the self-employed.

The loss of revenue during the transition to capital gains tax is estimated at €3.5 billion annually. Heinen's draft does not address how to compensate for this lost income, and the current wealth tax system has been deemed unfair by the Supreme Court. Parliament has already indicated it does not support a stopgap measure to lower the thresholds for the wealth tax.