Recently, through a webinar, the Inland Revenue informed tax service providers about the status of the box 3 legal recovery. In addition, on March 13, 2025, the bill for the Box 3 Counter Evidence Act was sent to the House of Representatives for approval. In this news release, we would like to inform you about the latest developments on this and how you can already prepare for future developments.
Box 3 counter evidence law
In several articles on our website we have explained the developments regarding box 3. In short: if you can prove that your actual return is lower than the fixed return (rebuttal evidence), then your lower actual return will be taxed. On March 13, 2025, the Box 3 Counter Evidence Act was sent to the House of Representatives. This Act defines what is to be understood by "actual return" (based on the Supreme Court ruling of June 6, 2024) and how the rebuttal evidence can be provided.
The ability to provide rebuttal evidence is becoming increasingly relevant. The government plans to reduce the tax free capital to approximately € 52,000 from 2026, and to increase the fixed rate of return on other assets by 1.78%. These proposed changes will result in more taxpayers having to pay tax on their Box 3 assets, and the flat rate of return will be increased. Based on a box 3 capital consisting of €500,000 in savings, other assets worth €1 million and €500,000 in box 3 debts, the proposed amendments result in an increase in the flat rate of return by approximately €16,500 and an increase in the tax to be paid on the box 3 capital by approximately €6,000 (based on the final return rates as they applied in 2024).
What is real return?
The Supreme Court has ruled that when determining the real return, the entire asset must be considered. In addition to the direct income from the assets, such as interest, dividends or rent, the (unrealized) changes in the value of the assets are also considered as actual return. When determining the actual return, the interest paid on debt may be deducted in Box 3. According to the Supreme Court, expenses may not be deducted when determining the actual return. The legislator has adopted the Supreme Court's guidelines for determining the actual return in the Act on Countervailing Evidence in Box 3. The legislator goes one step further and has included in the bill that from 2026 the own use of an immovable property (on the basis of a commercial lease) must also be included in the actual return.
The target group
You can only make use of the Box 3 Evidence Act for the assessments 2017 through 2020 if these assessments were not yet irrevocably fixed on December 24, 2021, or after that date, and if you have filed an objection or request for ex officio reduction in time. If you have not lodged an objection or a request for ex officio reduction, you will automatically be included in the mass objection plus proceedings. The Supreme Court will rule in these proceedings whether you can also use the Box 3 Evidence Act in that case. For assessments in 2021 and later, you can always use the Box 3 Evidence Act.
When should the actual return be communicated?
In July 2025 the actual return form (OWR) will become available. With this form you can report your actual return to the tax authorities.
In a webinar on box 3, the Inland Revenue indicated that the deadline for completing the form is 12 weeks if the form is completed as justification of a previous objection or a request for ex officio reduction of a previously imposed assessment. If the form is completed as an addition to a recent income tax return filed by us, the deadline is 26 weeks. If you filed the income tax return yourself, the latter period is also 12 weeks.
Determining your actual return can be very time-consuming, especially for larger estates, if you hold various assets, or if there are many (investment) transactions in a given year. In addition, the deadline for completing the form is relatively short. To be prepared for this, we recommend that you identify in advance the years in which your actual return is likely to be lower than the flat-rate return, and gather the supporting documents needed to determine the actual return for those years. We would appreciate receiving these documents as soon as possible. The Tax Authority has published a list of supporting documents you may wish to consider.
Incorrect information on the internet
We also note that incorrect information is circulating on the Internet and social media that in the proposal for the new box 3 system, the own home would be taxed in box 3. This is therefore incorrect. The owner-occupied home (the main residence) will continue to be taxed in Box 1 under the new system, with the current mortgage interest deduction being maintained.
The reports that capital gains on your own home would be taxed in box 3 are also incorrect. If you put the surplus value of your own home in a bank account, then under the new system you only pay tax in box 3 on the interest you receive on this bank account.
In conclusion
Do you have questions about your rights, or are you curious as to whether the Act against proof box 3 can benefit your situation? Please contact us via your relationship manager, by phone on 040 - 2 504 504 or via the contact form below.