Dutch Leaders Rework 36% Tax on Unrealised Crypto Gains
- Heinen says the Dutch crypto tax bill cannot stand as drafted and needs revision.
- The proposed 36% levy taxes on paper gains even when investors have not sold assets.
- Senate approval remains pending while ministers reopen talks before the 2028 start.
Dutch crypto investors reacted with relief after Finance Minister Eelco Heinen said he will amend legislation taxing unrealized gains on digital assets. The law would impose a 36% levy on paper increases in crypto value. Heinen said the bill cannot pass in its current form and requires changes before further progress.
The Dutch House of Representatives approved the measure on February 12. The proposal would require taxpayers to pay 36% on rising crypto values even without selling assets. Heinen told RTL Nieuws that something went wrong and the law needs revision.
The legislation, known as the Actual Return in Box 3 Act, still requires approval from the Eerste Kamer, the Dutch Senate. Lawmakers scheduled implementation for January 1, 2028. That timeline gives the finance ministry room to revise the proposal.
Mounting Criticism Over Unrealised Gains
The proposal triggered criticism from the crypto sector and other investors. Critics argued that taxing unrealised gains creates financial strain during volatile market cycles. They warned that price swings could leave taxpayers owing money despite later losses.
Under the draft law, an asset that rises one year but falls the next could still generate a tax bill. Investors would owe tax on the earlier gain even if the value later collapsed. Many commentators described this structure as unfair and impractical.
Shopify CEO Tobias Lütke criticized the measure in a February 13 post on X. He described it as the dumbest policy any government is pursuing. His remarks drew attention across the crypto community.
Taxing unrealised gains remains rare among developed economies. Most countries tax cryptocurrency profits after investors sell assets. A few jurisdictions, including Dubai, Abu Dhabi, and the Cayman Islands, do not tax crypto gains.
Government Signals Reset
Heinen acknowledged flaws in the legislation during remarks to Dutch media. He said he does not think the law can pass as written. He stated that the current version needs amendment.
Heinen said he already discussed the issue with his state secretary. He added that they plan to return to the drawing board. They will open discussions with both the House of Representatives and the Senate.
It remains unclear whether lawmakers will rewrite the bill or adjust specific sections. The finance minister did not specify the scope of the changes. The debate now shifts back to Parliament for further deliberation.
Related: Netherlands Regulator Targets Polymarket With Weekly Penalty
Legal Background and Global Context
The proposal emerged after the Dutch Supreme Court struck down the previous Box 3 tax system in 2021. The court ruled that the old regime violated property-rights protections. That decision forced lawmakers to search for a replacement.
Lawmakers designed the Actual Return bill to tax actual investment returns instead of assumed returns. The previous system relied on hypothetical gains. The new structure aimed to align taxation with real performance.
The world sees governments working to establish crypto regulations because digital assets become more accepted as financial assets. Most jurisdictions treat crypto gains like other investments. The Dutch proposal stands out because of its extensive design and operational framework to separate different aspects of its structure. The Netherlands needs to develop a crypto tax system which will provide adequate revenue while maintaining stable market conditions.
