Will the Tax Authorities soon also be knocking on the palace’s door?
Whether you are a big fan of the Oranjes or a staunch opponent – it is and remains a thorn in the side for many Dutch people that King Willem-Alexander and part of his family do not pay taxes. Ouch, there are more and more calls for these rules to be changed.
tax
Whatever you think, the law stipulates that King Willem-Alexander, as monarch, does not have to pay taxes. This has been true since 1948, and was laid down in the Constitution at the time to ‘guarantee the independence of the monarch’, according to Trouw.
This is why, in addition to Willem-Alexander, Queen Máxima, Princess Amalia and Princess Beatrix do not pay income tax on the benefits they receive from the State. Tax is also not paid on inheritances, donations, part of the assets, and vehicles with an AA license plate. They do pay capital on their private assets, the dogs, and VAT is deducted on groceries.
Constitution
And amend a constitution? That doesn’t happen easily. For example, NOS explains that such a change must be discussed twice in both the Senate and the House of Representatives. At the so-called first reading there must be a ‘simple’ majority in favor of the proposal. A second reading can only take place after new House of Representatives elections, and a two-thirds majority of both chambers must subsequently agree.
And now, after years of discussions, it is the first time that such a two-thirds majority in the House of Representatives actually supports such a change.
Pros and cons
Supporters of the change argue that the royal family should not be an exception and, like all other Dutch people, should contribute to the treasury by paying income tax. The lack of transparency is also often criticized. According to research by Kieskompas, approximately seventy percent of Dutch people agree that the head of state should pay taxes.
Opponents, such as Prime Minister Rutte, have cited the ‘brutalization’ as an important reason not to make any changes. “If the king were to pay tax on his fees, he would have to pay almost half because he falls in the highest tax bracket,” writes Trouw. And that means that he would have to have almost doubled his gross income to have the same net result.
Start small
However, the monarch should not immediately expect a blue envelope on his doorstep next tax season. After all, a lot has to happen before the Constitution can be amended.
That is why some politicians now want to adjust the exemptions in a few small steps. For example, NSC MP Van Vroonhoven states: “We also think it is a good idea to start taxing AA cars, this does not require a constitutional amendment.”
Source: NOS, Trouw | Image: NL Image
