Starting in 2028, the Dutch government intends to transition to a taxation system in Box 3 based on actual returns. Until then, however, taxation will still be calculated using notional (forfaitary) returns, which may be disadvantageous if the actual return is lower than the fixed percentage. The Supreme Court has ruled that taxpayers are allowed to present counter-evidence if they can demonstrate that their actual return is lower than the notional return established by the Tax Authority. This means taxpayers will need to substantiate their actual return themselves.
Taxpayers eligible to report their actual return for one or more years have already received a letter from the Tax Authority. Starting this summer, it will be possible to report actual returns using a special form: “Opgaaf Werkelijk Rendement” (Statement of Actual Return).
The actual return includes the total assets in Box 3, including both realized and unrealized changes in value (including real estate). It is crucial to maintain accurate records and preserve relevant documents needed to calculate the actual return. Below is a summary of the information generally required for this calculation. In addition to the standard data necessary for the income tax return, the following information is also relevant:
- An overview of interest received on bank and savings deposits
- An overview of income received from investments, shares, bonds, options, and cryptocurrencies
- The total positive and negative results from the purchase and sale of investments, shares, bonds, options, and cryptocurrencies during the year
- The change in value of the assets
- Rental income from rented properties (in the Netherlands and/or abroad)
- Interest received on receivables
- Interest paid on debts
A legislative proposal, the “Wet Tegenbewijsregeling Box 3” (Box 3 Counter-Evidence Regulation Act), was recently submitted to the House of Representatives. This proposal outlines how taxpayers can plausibly demonstrate that their actual return is lower than the notional return in Box 3. The proposal largely codifies the Supreme Court’s ruling on determining actual returns. The proposal has faced considerable criticism. It is likely that changes will still occur regarding the counter-evidence regulation before the summer. Nevertheless, we advise taxpayers who have received a letter from the Tax Authority to begin gathering and maintaining the above-mentioned information. If additional information becomes necessary, we will inform you accordingly.
