N-VA is considering raising taxes on savings

Today there is a tax exemption for our savings. You only have to pay taxes when your savings exceed 1,020 euros. This is associated with a favorable rate of 15 percent. N-VA now wants to increase that tax to 30 percent. As compensation, the party proposes to increase the tax-free amount. Our calculations show that such a measure will affect the significant savings in their portfolio. The small savings then reap the benefits.

Main restaurants

• N-VA wants to double both the withholding tax and the tax-free amount for regulated savings accounts.
• The main goal is to simplify savings taxes. In addition, Europe has repeatedly criticized tax exemptions.
• As a result of the bill, small savers will be less likely to have to hand over part of their savings income to the tax authorities, while the tax burden for savers will increase big

Correction: We had previously written that Open Vld also proposed to increase the withholding tax, but that is not correct. The party wants to keep the 15 percent rate for savings products. The Liberals are proposing to increase the tax-free amount to 1,800 euros. This exemption would apply to the amount of all capital gains, including savings interest and dividends

Explanation: When do you have to pay tax on your savings today?

• Anyone who saves through a regulated savings account pays no tax on the first 1,020 euros in interest. On everything above that level, you pay a 15 percent restocking fee. That is a favorable rate, as for all other capital gains the rate is 30 percent.
• For example, if you get a savings interest rate of 2 percent, you only need to hand over part of the savings to the tax authorities when there are 51,000 euros in the account.

In the news: The Flemish nationalists want to delete that preferential rate. According to their plans, the tax exemption will remain. Even more, they want to increase the tax-free amount to 2,000 euros. They discussed the bill in Parliament yesterday.

• The main goal is to simplify savings taxes. In addition, Europe has repeatedly criticized tax exemptions.
  • The European Commission recently went to the European Court of Justice to challenge this favorable regime. According to Europe, the tax exemption for regulated savings accounts hinders the free movement of services and capital in Europe.
  • The European Commission believes that the rules for the preferential regime are so strict that foreign savings accounts cannot comply with them, which therefore leads to an unfair competitive advantage for Belgian accounts.
• according to Spaargids.be The N-VA MPs also want to eliminate the 833 euro exemption on shares. These capital gains would also end up in the tax basket of savings interest. This means that you do not have to pay taxes on all that money as long as you stay below the limit of 2,000 euros.

It was noted: This is not the first time that N-VA has been proposed to tinker with savings fees.

• Creator Bart De Wever had already introduced changes to his master notes. For example, he already proposed to simply eliminate the tax exemption.

Also this: Open Vld also has a proposal ready for some reform of savings fees.

• “In our proposal we keep the 15 percent rate for savings accounts, but we will increase the tax-free amount to 1,800 euros. This exemption applies to the amount of all capital gains, including savings interest and dividends,” a spokesperson for the party told our editors.

The impact of tax changes on our savings

Explanation: Thanks to the N-VA proposal, those who save only will be able to save more money before having to pay taxes. Again we take a savings account with an interest rate of 2 percent as an example.

• Anyone who puts 100,000 euros in that savings account today will see 147 euros of the money disappear into the state treasury. The net amount is still 1,853 euros.
• If the new system comes into effect, you will not pay taxes because your savings will bring in a total of 2,000 euros.

Explanation (2): And what are the higher amounts? Let’s take a savings account with 200,000 euros in it as an example. We again assume an interest rate of 2 percent.

• If you have 200,000 euros in the savings account, you will receive 4,000 euros after one year of saving. Today tax authorities are collecting 447 euros. In this case, you will receive a net amount of 3,553 euros.
• If the new tax system is introduced, a total of 1,140 euros will flow to the state treasury. So you get a net of 2,860 euros, or 693 euros less than under the current system.

Don’t forget: The tax exemption applies to everyone.

• If the savings account has two holders, the ceiling doubles. Under the new system, the tax exemption would then be 4,000 euros.