On December 24, 2021, the Dutch Supreme Court has ruled that the current Box 3 system (income from savings and investments) may result in an excessive tax and is therefore unlawful in certain cases.
In case the actual Box 3 income is lower than the income calculated in the tax return (which is calculated on the deemed return on the wealth of box 3, as prescribed by the Dutch income tax legislation), an objection (“bezwaarschrift”) may be filed when the final Dutch income tax assessment (“Definitieve Aanslag”) is issued (within 6 weeks after the assessment date of this income tax assessment).
In this objection, one could then request to be taxed on the actual income from savings and investments of box 3 instead in case this is lower than the deemed income as calculated under Dutch income tax legislation. However, in case the actual income from savings and investments is higher than the deemed return on the wealth of box 3 as prescribed by the Dutch income tax legislation, one is only required to pay income tax on the lower deemed return of the investment value.
For the scenario wherein the actual income from savings and investments of box 3 is actually lower than the prescribed deemed income, it is not possible to take action sooner than the moment the final Dutch income tax assessment is issued.
Please share your final income tax assessment with us to review whether any objection is advisable in your case.