Collective ruling box-3 mass objection procedures 2017 to 2020

11 February 2022

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The Tax and Customs Administration has published the collective decision in the massive objection procedures against the box-3 tax for 2017 to 2020. All 200,000 objections have been declared well-founded. This does not mean that the participants in the mass appeal procedures now know how much they will get back and when.

There is also nothing known about possible compensation for other taxpayers who have paid too much box-3 levy. According to the cabinet, a box-3 levy based on the actual return cannot come into effect until 2025. However, urgent legislation is currently being worked on, which should provide a solution for the intervening years.

The emergency legislation makes adjustments to the existing box-3 legislation. The cabinet undertakes to send a memorandum of direction for the recovery operation to the House of Representatives before 1 April 2022. The left-wing opposition parties have already announced a private member’s bill that is based on a progressive levy on assets minus debts with a tax-free allowance of € 100,000 per person. The owner-occupied home remains in box 1 and substantial interest shares in box 2. The rate increases from 1% to 500,000 to 5% above € 5 million in taxable capital.

Tax assessments and tax return 2021

The ruling of the Supreme Court also has consequences for 2021 and later years. No final assessments are currently sent to taxpayers with box-3 capital. An exception is only made if there is a threat of prescription or if there is an interest in the taxpayer. As soon as it is clear what the recovery will look like, these attacks will be reinstated. Taxpayers will be informed about this.

The Tax and Customs Administration asks taxpayers to pay the provisional tax assessment 2022, pending further decisions. They are also asked to simply submit the 2021 tax return, stating the box-3 capital. Taxpayers with box-3 capital will probably receive their 2021 assessment later than 1 July 2022, even if they submitted their 2021 tax return before 8 April.