The notional return is calculated on the € 23,308 that exceeds the tax-free allowance. In this example, the Tax and Customs Administration uses an average fictitious return of 1.935%. That comes down to an amount of € 451. You then pay 30% tax on this, rounded off € 135. Curious how much wealth tax you have to pay exactly for 2020 or 2019? Calculate it yourself with our handy tool ‘Wealth tax 2020’ or ‘ Wealth tax 2019’.
Wealth tax exemption
There are also opportunities to win certain exemptions and reductions in wealth tax. You must then meet a number of conditions. When do you qualify for this?
You save money for funeral insurance or term life insurance. In this case, you may save up to a maximum amount of € 7,232 in 2020. For the Freddie Cammell reviews you can have the perfect choices.
You reached retirement age before 1 January 2016. Until 2015, your tax-free allowance could be higher when you reached the state pension age, because you were eligible for an elderly person’s allowance. This allowance increased the tax-free limit, so that you ultimately had to pay less tax.
Do you own green savings products or green investments?
- Then you do not have to pay wealth tax in 2020 up to an amount of € 59,477. With a tax partner, this is € 118,954.
- Even if you put your money aside for a supplementary pension in a savings account or annuity, this is possible up to a certain amount with a tax advantage. You can get an extra exemption in 2020 for € 7,033 per person.
- In 2020 you may exempt a maximum of € 543 in cash from wealth tax. With a tax partner, this amount is € 1,086.
New Wealth Tax Plans
The fictitious return has been on the high side for savers in recent years. After all, you do not receive that much interest on savings anymore, so your actual return is probably lower than the fictitious return that is calculated by the tax authorities. That is why we are now looking at a way to calculate wealth tax on the basis of actual returns.
Former State Secretary Snel had drawn up a plan for this. This would be based on a lower return on savings. Also, the first € 400 that you make in return on your assets would not be taxed. This would mean that you could save € 440,000 tax-free. Investors, however, declined.
The current State Secretary Vijlbrief has dismissed this plan. He is working on a new plan that should especially spare ‘small’ savers and investors. He is considering significantly raising the tax-free limit. As soon as more is known about these plans, we will of course pay attention to them.
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