Tax for capital gains. Is it applicable in the Netherlands and if so, in which situations?
Article ID: 209 | Last Updated: Wed, Mar 14, 2012 at 1:38 PM
My understanding is, that in NL there is no capital gains tax for trading shares or other securities (options, futures).
My question: are there any limitations for this regarding the number of traded securities ? With other words: is this also valid for private daytraders trading hundred shares per day ?
In general an individual will not have to pay tax on capital gains. So if the main residence is sold or shares are sold the profit is not taxable. This is different if the transaction(s) exceed(s) normal asset management. In that case the capital gain is treated as income from other activities or even business income.
the number of transactions -> the more transactions the sooner it is assumed that activities exceed normal asset management
specific knowledge of the individual -> if the individual is a professional trader, the personal transactions will be seen as taxable income sooner than if the individual doesn‘t have specific knowledge or experience.
work which is invested in the asset -> if maintenance of a property is taken care of by an external party the activitities may be seen as normal asset management, if the owner does all the maintenance himself and even the renovations the tax authorities will argue that this is no longer normal asset management.
So it depends on the actual facts and circumstances how the capital gain is treated. Even judges do not always decide the same.