Update box 3 developments

For years, legal proceedings have taken place over the fictitious method of taxing Box 3 assets. The system assumed a fictitious return that was considerably higher than the interest actually earned on savings accounts. In December 2021, however, the Dutch Supreme Court ruled that the fictitious calculation for Box 3 in 2017 and 2018 imposed a disproportionate burden and therefore violated the human rights convention. According to the Supreme Court, taxpayers who lodged an objection must be granted legal restitution.

On 6 June 2024, the Supreme Court ruled that the renewed fictitious levy still violates the human rights convention. As a result, the Dutch Tax Authority has introduced a new scheme that more closely estimates actual returns. Because determining the actual return is often complex in practice, the new system is intricate and still contains fictitious elements. If the outcome of this method is more favourable than that of the fictitious system, taxpayers may opt for this approach. For a detailed explanation of this system, see the section Declaration of actual return.

This scheme anticipates a completely new Box 3 tax based on actual returns. Its introduction is currently expected in 2028.