Taxation of STAK and Economic Ownership Rights (EOR)

Learn how depository receipts (STAK) and Economic Ownership Rights are taxed as assets under Box 3.

Share certificates are often issued by a foundation, such as a Stichting Administratiekanton (STAC), while EOR is typically issued directly by a company. For the Dutch Tax Authorities, both are considered real ownership and are classified as part of the holder's assets.

Taxation in Box 3

In the Netherlands, wealth is taxed under Box 3. This means that the increase in value of your assets is not directly taxed; instead, a notional return is calculated. For example, if you own a share certificate worth €20, you must report it to the Tax Authorities at the end of the year or the beginning of the following year.

Example

• You own a certificate worth €20, which is added to your total assets.
• If your total wealth exceeds the threshold of €100,000 (depending on individual circumstances), you pay tax.
• The Tax Authorities assume a notional return, for example, 4%, and you pay 25% tax on this return.

This is an annual tax on wealth, not on the growth in value of the certificate itself.

Acquiring Certificates

Purchased Certificates

If you purchase a share certificate at full value (e.g., €20), there is no immediate tax. Unlike buying property, there is no transfer tax or other deductions.

Employer-Provided Certificates

If you receive a certificate for free or at a discount, it is treated as a form of income. For instance:

• You receive a certificate worth €20 for free.
• The Tax Authorities view this as a benefit, subject to income tax (payroll tax).

Employers are responsible for withholding this tax and paying employer contributions.

Wealth Growth and Selling

You pay annual tax on the total value of your assets, including share certificates. For example:

• In year 0, you buy a certificate for €20.
• In year 3, the certificate is worth €100. You are taxed on €100 as part of your wealth.
• In year 5, you sell the certificate for €150. The profit of €130 is tax-free, but you have paid annual wealth tax during the holding period.

Conclusion

Share certificates and Economic Ownership Rights are considered part of your wealth by the Tax Authorities. While no tax is paid on profits from selling these instruments, annual wealth tax applies. Understanding the financial implications of holding and growing these assets is essential.