The Council of State (RvS) has issued its advice published on the concept of the Bill on actual returns under Box 3. The Council of State advises the government not to table the bill in its current form and to reconsider it.
What does this mean for you?
The Council of State’s advice is likely to mean that the Government will have to adjust the timetable required for the introduction of the bill. As a result, the new legislation may come into force at a later date. According to the schedule, the bill was due to come into force on 1 January 2028, but in view of the ITC problems at the Tax and Customs Administration, this could well be postponed to 1 January 2029. The Council of State’s advice is likely to result in an even (much?) later date of entry into force.
In the meantime
Until the new regime for Box 3 comes into force, the current statutory system will remain in place, albeit with the option to provide evidence to the contrary that the actual return on assets and liabilities classified under Box 3 is lower than the notional income determined by law.
The current legal system involves what is known as the fixed asset mix. Each year, a flat-rate return is determined for the three asset categories (bank balances, other assets and debts) and, on the basis of these returns, the flat-rate income is calculated, on which 36% income tax is payable (2025 rate).
The actual return achieved must be determined on the basis of the guidelines provided by the Supreme Court (and which it may provide in future judgements). We describe the guidelines provided by the Supreme Court to date in our articles Supreme Court again rejects flat-rate levy box 3 and More rulings on box 3.
The burden of proof regarding the actual return on investment rests with the taxpayer. For previous years, this can be rebutted by submitting the ‘Statement of Actual Return’ (OWR) form, which the Tax and Customs Administration is currently developing. From (probably) 2025, this will most likely form part of the income tax return.