Before there will be a capital gains tax system in the Netherlands (probably around 2026), the government opted for the bridging legislation based on the so-called flat-rate savings option. Here, a fictitious return is calculated based on the actual composition of assets, broken down into three categories (savings, debts, and other assets). People that have a lot of savings can be satisfied with this taxation. However, we have our concerns about the bridging legislation of box 3 in the Netherlands. Why? Investors with low returns will be taxed just as heavily in the reformed box 3 as investments with high returns.
Happy to help with the wealth tax 2022
You can file the income tax return for 2022 starting from March 1st, 2023. Could you use some help with your tax return and the wealth tax for 2022? We are happy to help you! Fill in the contact form or call us at +31 20-2170120 to discuss the possibilities.
Box 3 taxation on low-yielding investments
Overall, 2022 has not been the best year for investors. For many people who have invested their assets in shares, the new wealth tax in the Netherlands won’t be fair. This is because all assets that don’t belong to savings or debts are taxed the same. This so-called fixed return on “other” assets is based on the average of the past 15 years, which will be difficult to fulfill in 2022. The provisional percentages of box 3 income for 2022 are as follows:
- Savings: 0.01%
- Other assets: 5.53%
- Debts: 2.46%
Please note: the percentages for 2022 are not yet fixed. The final figures will be announced before the 28th of February, 2023.
Objection against box 3 levy
Do you have investments with low returns? Or even a negative result. Then, the fictitious return of 5.53% is often not achievable. The wealth tax is still too high for you, which is unreasonable. You don’t have to agree with this. We suggest you submit a notice of objection against the box 3 levy. The government expects this to happen, which may lead to a new mass objection procedure of box 3. After the date of the final assessment, you must submit your notice of objection within 6 weeks. So make sure you do that on time! Need help writing an appeal? We are happy to help you!
Box 3 taxation on low-yielding investments
Until 2021, the tax authorities in the Netherlands calculated with a notional (fictitious) return without looking at your asset mix. The higher your capital (above the exemption), the higher the notional return because the Dutch tax authorities assume that a larger part has been invested. The following notional returns applied in 2021:
- up to €50,001 = 1.898%
- €50,001 to €950,001 = 4.501%
- from €950,001 = 5.69%
In 2021, you paid 31% tax on this notional return. The Supreme Court has decided that this can no longer be the case, hence the new savings option.
Help with you Dutch taxes?
Speak directly with one of our tax advisors
Could you use some help with the income tax return in the Netherlands or writing the notice of objection about the box 3 levy? Or would you like more information about the wealth tax 2022? We are happy to help you! Feel free to contact us using the details below.
Fill in our contact form, and we will get in touch
Send your message to +31 20 – 2170120
Call us on +31 20 – 2170120
