The Supreme Court recently ruled on levying Box 3 taxes on deemed/notional returns. This appeared to be against the law. Migrantic has already objected to the levying of assumed returns in cases where the (unrealized) return on the investments were lower than the notional return, on box 3 assets for various clients.
For homeowners with their own home with a WOZ value higher than € 1,130,000.00, an additional tax (of 2.35%, the so-called “villa tax”) applies in Box 1, which is now also under discussion. This levy, just like the levy of tax on notional returns in Box 3, is seen by some fiscal scholars as contrary to European property law. There is a possibility that this tax will also be deemed to be against the law by the Supreme Court.
The notional rental value has been introduced to tax the housing benefit of homeowners. The “villa tax”, introduced in 2009, is, according to some, contrary to this goal, especially because the value limit at which the higher rate applies has not remained in line with rising house prices.
Although the outcome is still highly uncertain, we advise our clients to object to the additional tax of 2.35% because a failure to submit a notice of objection will seriously harm your legal position if no objection has been submitted and the Supreme Court considers the levy to be contrary to the law. Migrantic is of course happy to assist you with this.