As in the 2023 tax return, your assets are in principle subject to the fictitious box 3 levy in 2024.

Bank deposits are taxed at a low rate, while other assets are taxed at a higher rate. The assumed income is 1,44% on bank deposits and 6,04% on other assets. Additionally, debts are only taken into account with a negative return of 2,47%. The tax-free allowance is calculated at a weighted average rate. This fictitious return on your assets is then taxed at 36% in box 3.

On June 6, 2024, the Supreme Court ruled that the current fictitious taxation still violates the European Convention on Human Rights. As a result, the Tax Authorities are developing an option to tax your actual Box 3 return if it is lower than the fictitious income on your assets. The actual return also includes capital gains. Later this year, a form will be released, allowing taxpayers to report their actual return to the Tax Office if this is advantageous.

The Supreme Court has set the following calculation rules for determining actual return:

• Direct returns (such as interest, dividends, and rental income) are taxed in the year they are received.
• Capital gains on assets such as shares or real estate, whether realized or unrealized, are taxable. For an investment portfolio, an overview of all purchases and sales throughout the year is required to determine capital gains.
• Losses, such as stock price declines or real estate devaluation, whether realized or unrealized, can be deducted from the actual return.
• The WOZ value must be used for changes in real estate value.
• Losses cannot be carried forward or offset against other years.
• Expenses are not deductible, except for interest paid on debts.
• There is no consideration for a tax-free allowance or income.

To benefit from taxation based on actual return, you as a taxpayer must demonstrate that your actual return is lower than the deemed return.

In many cases, however, a more favourable calculation will not be possible. If, for example, a large investment portfolio has had significant capital gain, or the WOZ value has substantially increased, taxation based on actual return will generally not be more beneficial. In such cases, it is not necessary to document all income in detail. Of course, we are available for consultation on this matter.