NewsCase StudiesEvents

Green Investments: Exemption From Equity Tax And Tax Credit

Also in the news...

Joint outcome statement: India-UK round five FTA negotiations

Round five of negotiations for a free trade agreement between the Republic of India and the United Kingdom

Customs declaration completion requirements the UK

Use this guide as a supplement when using the CHIEF and CDS trade tariffs to import and export goods to and from Great Britain (England, Scotland and Wales) after the end of the transition period.

What import and export restrictions apply due to sanctions for UK companies when trading with Russia.

Trading under sanctions with Russia

Confined establishments approved to export ungulates to the EU

Lists of confined establishments in Great Britain, Jersey and the Isle of Man approved to export or move ungulates to the EU and Northern Ireland.

Import VAT and Customs Duty on gifts

Find out about Import VAT and Customs Duty when you send gifts into the UK.

Green Investments: Exemption From Equity Tax And Tax Credit

Back to News

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”).


You are not logged in!

Please login or register to ask our experts a question.

Login now or register.