Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/7/2012

The Netherlands - Real estate transfer tax on property’s resale 

September 7:  The Dutch Ministry of Finance issued a decree extending to 36 months (from the six-month period) the time relating to a deduction of the real estate transfer tax in the event of a resale of the property.

The extension was issued in anticipation of proposals expected to be introduced as part of the 2013 Tax Plan, and in order to give a boost to the real estate market.


This extension only applies to real estate—residential or non-residential—purchased from 1 September 2012 onward.


During a 36-month period following the purchase, the amount on which real estate transfer tax or VAT is owed—whereby the VAT cannot be deducted as input VAT—may, on resale of that real estate, be deducted from the real estate transfer tax base. A six-month period applies to real estate purchased before 1 September 2012.

KPMG observation

This measure could act as an incentive, now that the real estate transfer tax base can be deducted over a much longer period when the real estate is resold. Although not included in the decree, the accompanying press release states that the 36-month period applies to all real estate purchased before 1 January 2015.


Read this September 2012 report prepared by the KPMG member firm in the Netherlands: Extension of period for real estate transfer tax in the event of resale




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