The tax office will probably not meet the 2027 deadline to introduce a new asset tax based on actual income, the Financieele Dagblad reported on Friday.

The draft legislation is currently being assessed by the Council of State but its introduction is likely to be delayed because of a shortage of IT capacity at the tax office, the paper said. Every year of delay is costing the treasury €2 billion.

The revamp follows two court rulings which said that the asset tax paid in Box 3 should reflect actual earnings rather than a standard estimate.

The rulings also require the government to pay compensation to people who paid too much tax in the current situation and reassess thousands of tax returns dating from 2021.