Box 3 appeal procedure
On this page we will inform you about the latest developments regarding Box 3 , following recent legislative changes and a significant ruling by the Dutch Supreme Court (Hoge Raad). Please read this message carefully, as it may affect your tax situation for 2024 and previous years.
Key points
New Calculation Method for 2024: Your Box 3 income for 2024 is now calculated using the actual distribution of your assets (such as savings, investments, and debts), rather than a notional split. The tax authority uses notional rates of return that closely match actual market rates for each asset type.2024 notional rates:
- Bank savings: 1.44%
- Investments and other assets: 6.04%
- Debts: 2.61%
The tax rate for Box 3 remains 36%. There is a tax-free allowance of
€57,000 per person (or €114,000 for tax partners).Recent supreme court ruling (June 2024)
On June 6, 2024, the Supreme Court ruled that both the Box 3 recovery legislation and the bridging law are in violation of the European Convention on Human Rights. The main issue is that the system still uses notional (fictitious) returns, which can be higher than the actual returns achieved by taxpayers.Key consequences
- Only the actual return on your assets may be taxed, if this is lower than the notional return.
- The tax authority will adjust your assessment if this ruling affects your Box 3 calculation. You will receive a letter if this applies to your situation.
What does this mean for you?
For 2024 and previous years (2017-2023): If your actual return on assets is lower than the notional return used for Box 3, you may be eligible for a reduction in your tax assessment.- From the summer of 2025, you will be able to report your actual return to the tax authority using a new form. The tax authority will send you a letter with instructions and the necessary form for each relevant year.
- If your actual return is higher than the notional return, no further action is required; you will not pay more tax than previously calculated.
Mass objection plus procedure:
If you did not previously file an objection regarding Box 3 for the years 2017–2020, you will be included in the so-called “mass objection plus” procedure. This means your case will be reviewed automatically, and you do not need to take any action at this time. If the Supreme court decides you are entitled to restorative justice you will receiver a letter from the Dutch tax office. However, when the Supreme court decides you are not entitled to restorative justice you will not receive a letter from the Dutch tax office.Next steps
- Summer 2025: The tax authority will send you a form to report your actual return for each relevant year.
- End of 2025: If you are eligible for a reduction, you will receive a notification and the tax authority will recalculate your Box 3 income based on your actual return (if lower than the notional return).
What do you need to know?
- No immediate action is required.
- If you receive a letter from the tax authority, follow the instructions to report your actual return.
- Blue Umbrella will continue to monitor developments and will proactively inform you about next steps and whether it is beneficial for you to file an objection or submit your actual return.