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Green Investments: Exemption From Equity Tax And Tax Credit

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Green Investments: Exemption From Equity Tax And Tax Credit

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Green investments: exemption from equity tax (box 3) and additional tax credit. In these times of low interest rates on savings deposits, green investments can tax wise be a favorable alternative to low-yielding assets.

Exemption box 3
€ 57,845 (2018), up to this amount of green investments no box 3 is payable.This can give tax savings of around 0.6% – 1.61% tax on an annual basis (depending on the amount of the total assets), or € 347 – € 931.

Tax credit
A tax credit is deducted from the tax due.
The tax credit for green investments is 0.7% of the exempted green investments box 3.

Example
Suppose you invest € 50,000 in green investments, then the saving is:
€ 300 – € 805 in saving box 3
€ 350 in tax credit
So total savings in this example are between € 650 and € 1,155.

The disadvantage is that probably no interest is paid on green investments.But withordinary savings you must achieve at least 1.3% p / year (but probably more) in order to arrive at the same or better overall outcome than with green investments.

Above the amount of the exemption, there are no tax benefits to the green investments. The exemption does not count for the calculation of allowances (“toeslagen”).


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