Some parties in the Netherlands’ House of Representatives have agreed they wish to abolish the tax exemption currently enjoyed by the Dutch royal family. King Willem-Alexander, Queen Máxima and Princess Beatrix currently do not pay taxes on their incomes, a part of their capital and inheritances and donations. The cars from the royal family carrying license plates beginning with AA are also exempt from the motor vehicle tax.
Though it’s not yet agreed upon what exactly they should pay taxes on, they are looking at the possibilities of paying taxes on their incomes and capital but also perhaps looking at inheritance tax. So far it’s unclear what exactly the King has inherited from his grandparents and other family members. The discussion on whether the Dutch royal family should pay taxes has been going on for years and has never been fully agreed upon.
The Labour Party (PvdA) filed a motion this week which intends to tax at least a part of the capital. According to an MP, it’s unexplainable to the public that the King, who receives a substantial income, also doesn’t have to pay tax on this income. He says that even the royal family should be subject to the same laws as the rest of the Dutch people and that exceptions do not fit in a modern monarchy.
The Prime Minister, Mark Rutte, has said on the subject that the King has a special role in society and that changing this law will lead to ‘an enormous amount of administrative hassle’.
The Labour Party’s motion might get a majority in the House of Representatives as there are several parties who support it. The Party for Freedom (PVV) has stated in his election program that the royal family should pay 20% income tax. The Socialistic Party (SP) and Democrats 66 (D66) has been supportive of abolishing the tax exemption for years.
