5. Tax deductibility No 6. Use of Revenue Proceeds accrue to Treasury. 7. Policy Objectives To partly finance the reduction in the property transfer tax. Compensation for state support during the crisis. To limit risks relating to the banking institutions. 8. Further notes Tax allowance of €20 billion (“efficiency exemption”). 9. Sources KPMG Meijburg & Co., Bank August 2012. “Dutch Tax”, Bank Tax August Peter Kavelaars, “Netherlands Introduced”, European Taxation, 2012. KPMG, Levies: Comparison of certain “Bank jurisdictions”, Edition IX, June 2012. PWC, bank levies May 2013. “(Proposed) – update”, 10. Coding of levy variables The levy was enacted in June 2012. We thus code the levy dummy variable one in 2012 and forward. In order to code the marginal levy rate, we need to estimate two levy bases. The first base, to which the full rate applies, is estimated as: total assets customer deposits equity long term funding – – – where proxies for regulatory capital; proxy for deposits equity customer deposits subject to a guarantee scheme; For banks for which this base exceeds the basic deduction of billion, we code the marginal levy rate as 0.044 in 2012. For banks €20 for which this base is smaller than the basic deduction of billion , we compute the €20 second base:
5. Tax deductibility No 6. Use of Revenue Proceeds accrue to Treasury. 7. Policy Objectives To partly finance the reduction in the property transfer tax. Compensation for state support during the crisis. To limit risks relating to the banking institutions. 8. Further notes Tax allowance of €20 billion (“efficiency exemption”). 9. Sources KPMG Meijburg & Co., “Dutch Bank Tax”, August 2012. Peter Kavelaars, “Netherlands Bank Tax Introduced”, European Taxation, August 2012. KPMG, “Bank Levies: Comparison of certain jurisdictions”, Edition IX, June 2012. PWC, “(Proposed) bank levies – update”, May 2013. 10. Coding of levy variables The levy was enacted in June 2012. We thus code the levy dummy variable one in 2012 and forward. In order to code the marginal levy rate, we need to estimate two levy bases. The first base, to which the full rate applies, is estimated as: total assets – customer deposits – equity – long term funding where equity proxies for regulatory capital; customer deposits proxy for deposits subject to a guarantee scheme; For banks for which this base exceeds the basic deduction of €20 billion, we code the marginal levy rate as 0.044 in 2012. For banks for which this base is smaller than the basic deduction of €20 billion , we compute the second base: