Final 2023 box 3 tax assessments await rulings

April 23, 2024


The Dutch Tax Office (Belastingdienst) is holding off on issuing final income tax assessments for 2023, particularly those involving box 3 income composed of assets beyond bank deposits, until further clarity is reached regarding the validity of the current box 3 taxation system.

Supreme court


Multiple appeal cases are currently pending at the Supreme Court (Hoge Raad) concerning whether the current method of calculating box 3 income aligns adequately with the Supreme Court's Christmas Judgment (Kerstarrest). The Supreme Court's rulings on these matters are expected in August/September. Pending these decisions, the Tax and Customs Administration is withholding final income tax assessments for 2023, as well as the filed objections that involve box 3.


If the Supreme Court follows the conclusions of Advocate-General (A-G) Wattel and Advocate-General (A-G) Pauwels, thus deeming the current box 3 law invalid, taxpayers will need to be given the opportunity to demonstrate their actual returns. The Dutch Tax Office has already made preparations for this by introducing a (digital) form called 'declaration of actual returns.'

Further delay


There is a significant likelihood of further delay in the implementation of the new box 3 law, which was initially set to come into effect in 2027. The House of Representatives (Tweede Kamer) has requested amendments to the proposed legislation. The PVV, VVD, NSC, and BBB parties are pushing for Finance Secretary Van Rij to impose a capital gains tax on all illiquid investments. Van Rij had previously stated in a letter that the special treatment of shares in family businesses has been removed. This means that shares in these enterprises will be subject to taxation under the general rule (capital gains tax).