What will change in the box 3 taxation?

Taxation in box 3: a hot topic nowadays. The intention is to make taxation in box 3 fairer for savers. The reason is that saving does not yield anything for the last years, which means that the fixed return in box 3 is a lot higher than the actual return you receive on your savings. But what exactly will change in box 3 taxation? In this article, we will go into that in more detail.

tax return phone

Changes for 2022 cancelled.

Firstly, the changes that were announced during Budget Day 2019 have been canceled. You can read more about this in this article.

A logical thing to think now is that the next step would be to tax the actual return. Yet, in reality, this turns out to be a lot more difficult.

But what will change then?

The taxation in box 3 will be adjusted from 2021 to reduce the tax burden for small savers and -investors. This change is mainly intended to ease the pressure on small savers: a solution has been sought for years.

What exactly does the change entail?

  • Increase of amount tax exemption

    The exemption will increase from € 30,646 to € 50,000 per person. However, this will not apply to the allowances and personal contribution under the Long-Term Care Act.

  • Increase rate

    The fixed return will no longer be taxed at 30% but at 31%. The purpose of this is to partially offset the lower income as a result of the tax-free allowance.

  • Change in brackets and fixed return

    Taxation in box 3 is divided into three brackets. These will also change in 2021: if you have a high captital, it is more likely to fall under a higher bracket. The brackets are divided into a ‘capital mix’. This means that they assume that:

    • Bracket 1 consists of 67% savings and 33% investments;
    • Bracket 2 consists of 21% savings and 79% investments;
    • Bracket 3 consists of 100% investments.

    The fixed return on savings will reduce from 0.07% to 0.03%. The fixed return on investments will increase from 5.28% to 5.69%.

In short:

So now, something will actually change in box 3 taxation. But what will this mean for you? If you have less than € 220,000 in assets, you have to pay less tax in 2021 than you do now. This is double the amount for tax partners. Therefore, the result is clear: lowering the pressure for ‘small’ savers.

We are happy to help!

Is it not entirely clear to you whether this has a positive or negative impact on your situation? Or do you have other tax-related questions? We are happy to help you! Feel free to contact us using the information below.

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