NewsCase StudiesEvents

Green Investments: Exemption From Equity Tax And Tax Credit

Also in the news...

Confined establishments in Great Britain

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.

Republic of Belarus sanctions: guidance

Guidance on the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019

UK-New Zealand Joint Committee ministerial statement

Details of the Joint Committee held as part of the United Kingdom-New Zealand Free Trade Agreement on 8 May 2024.

Tips for Success in the German Market:

Avoiding Pitfalls and Understanding German Consumer Needs

UK-China Intellectual Property Newsletter

At the end of every month we publish a newsletter covering recent intellectual property (IP) developments in China.

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.