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  3. Law: Taxation & Customs

Renditebesteuerung

English translation: tax on imputed income/returns from property

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Renditebesteuerung
English translation:tax on imputed income/returns from property
Entered by: transatgees

16:33 Sep 29, 2006
German to English translations [PRO]
Bus/Financial - Law: Taxation & Customs / Tax on disposal of assets in Holland
German term or phrase: Renditebesteuerung
In a description of tax liabilities for investors on the sale of investment property in Holland:

"Allerdings ist die Besteuerung von Privatpersonen in Bezug auf Gewinne aus der Verauesserung von in den Niederlanden belegenen Immobilien grundsaetzlich mit einer Pauschalbesteuerung (fiktive Renditebesteuerung) abgegolten."

Can anyone help with a recognised English term for this type of tax.
transatgees
United Kingdom
Local time: 16:53
tax on imputed income/returns from property
Explanation:
the point is that in Holland tax is levied not on actual income or gains from the property but on assumed amounts determined by the tax authorities (4% return for income, don't know about gains). We generally refer to this as an 'imputed' tax or tax on 'imputed' income, see examples.

Capital gains are treated as income in the Netherlands and subject to income tax not to a separate capital gains tax (see Appendix B of the PwC document).

Finally 'fiktiv' in financial contexts in German never means 'fictitious' (if the amounts were fictitious, you wouldn't have to pay them). It usually means 'theoretical' or 'assumed', though the relevant tax term here is 'imputed', as noted.

'partizipiert der deutsche Kapitalanleger von der pauschalen niederländischen Renditebesteuerung, die wesentlich niedriger ist als eine vergleichbare Besteuerung in Deutschland'
http://www.wams.de/data/2003/04/20/75237.html

‘Rather than taxing the actual income received from...real estate, Dutch law assumes a fixed 4% return on investment on net assets.’
http://www.pwcglobal.com/extweb/pwcpublications.nsf/docid/06...$file/netherlands.pdf#search=%22%22dutch%20property%22%20general%20tax%22

‘Imputed taxable income

For some countries we had to introduce a category of imputed taxable income...the best example here is imputed values of real estate property (Belgium, Italy and the Netherlands).’
http://66.102.9.104/search?q=cache:nceH2pjcm_kJ:www.econ.cam...

'Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax'
http://www.spanishpropertyinsight.com/spanish_property_taxes...

‘Housing income tax (imputed rents)

By raising the ongoing costs of home-ownership bringing imputed rental income into the tax net would likely lead to some drop in house prices.’
http://www.rbnz.govt.nz/monpol/about/2452274.pdf

--------------------------------------------------
Note added at 1 day20 hrs (2006-10-01 13:19:20 GMT)
--------------------------------------------------

the PwC link doesn't seem to work, try this:

http://www.pwcglobal.com/extweb/pwcpublications.nsf/docid/06...$file/netherlands.pdf
Selected response from:

Kieran McCann
United Kingdom
Local time: 16:53
Grading comment
Many thanks for a well-researched answer
4 KudoZ points were awarded for this answer



Summary of answers provided
5income tax
Michael Engley
4 +1tax on imputed income/returns from property
Kieran McCann
3 +1capital gains tax
swisstell


  

Answers


1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
capital gains tax


Explanation:
ficticious capital gains tax

swisstell
Italy
Local time: 17:53
Works in field
Native speaker of: German
PRO pts in category: 30

Peer comments on this answer (and responses from the answerer)
agree  Astrid Elke Witte: Yes, this would be the term.
2 hrs
  -> thank you, Astrid. Have a great weekend.
neutral  Kieran McCann: there is no capital gains tax in the Netherlands, gains are taxed as income
1 day 19 hrs
Login to enter a peer comment (or grade)

1 day 2 hrs   confidence: Answerer confidence 5/5
income tax


Explanation:
Since it sounds as if the text is referring to individuals and not to corporations or investment funds, capital gains tax is not appropriate; if the author had meant Kapitalertragsteuer, he certainly would have used that term. Nor is it taxation on returns, as "rendite-" might suggest, since we are dealing with income resulting from final sale of investment property. The Pauschalbesteuerung is simply a lump sum tax on something over which the German fiscus has no direct control, ensuring that Germany gets at least some money from the transaction (double taxation treaties notwithstanding), but no indication is given as whether this would qualify as a "Privateveräußerungsgeschäft" if it were domestic property. But that's beside the point, because regardless of how it's treated, i.e. what the basis for taxation is, it all comes down to Income Tax for private individuals. In this case, it's fictitious because it's "lump sum" - no real effort has yet been made to determine the true or final tax basis of the transaction.

Michael Engley
United States
Local time: 11:53
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 17
Login to enter a peer comment (or grade)

1 day 20 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
fiktive Renditebesteuerung
tax on imputed income/returns from property


Explanation:
the point is that in Holland tax is levied not on actual income or gains from the property but on assumed amounts determined by the tax authorities (4% return for income, don't know about gains). We generally refer to this as an 'imputed' tax or tax on 'imputed' income, see examples.

Capital gains are treated as income in the Netherlands and subject to income tax not to a separate capital gains tax (see Appendix B of the PwC document).

Finally 'fiktiv' in financial contexts in German never means 'fictitious' (if the amounts were fictitious, you wouldn't have to pay them). It usually means 'theoretical' or 'assumed', though the relevant tax term here is 'imputed', as noted.

'partizipiert der deutsche Kapitalanleger von der pauschalen niederländischen Renditebesteuerung, die wesentlich niedriger ist als eine vergleichbare Besteuerung in Deutschland'
http://www.wams.de/data/2003/04/20/75237.html

‘Rather than taxing the actual income received from...real estate, Dutch law assumes a fixed 4% return on investment on net assets.’
http://www.pwcglobal.com/extweb/pwcpublications.nsf/docid/06...$file/netherlands.pdf#search=%22%22dutch%20property%22%20general%20tax%22

‘Imputed taxable income

For some countries we had to introduce a category of imputed taxable income...the best example here is imputed values of real estate property (Belgium, Italy and the Netherlands).’
http://66.102.9.104/search?q=cache:nceH2pjcm_kJ:www.econ.cam...

'Although you do not earn an income from the property, in the eyes of the Spanish tax authorities you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax'
http://www.spanishpropertyinsight.com/spanish_property_taxes...

‘Housing income tax (imputed rents)

By raising the ongoing costs of home-ownership bringing imputed rental income into the tax net would likely lead to some drop in house prices.’
http://www.rbnz.govt.nz/monpol/about/2452274.pdf

--------------------------------------------------
Note added at 1 day20 hrs (2006-10-01 13:19:20 GMT)
--------------------------------------------------

the PwC link doesn't seem to work, try this:

http://www.pwcglobal.com/extweb/pwcpublications.nsf/docid/06...$file/netherlands.pdf

Kieran McCann
United Kingdom
Local time: 16:53
Works in field
Native speaker of: English
PRO pts in category: 70
Grading comment
Many thanks for a well-researched answer

Peer comments on this answer (and responses from the answerer)
agree  Kim Metzger: Thanks for the informed answer.
1 day 23 hrs
  -> thanks Kim
Login to enter a peer comment (or grade)



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