State Secretary Van Rij of the Ministry of Finance has set out the flat-rate returns to be applied in 2022 in the context of the restoration of legal rights announced.
The lowest of
For 2022, income from savings and investments (Box 3) is still set at the lower of:
- the income calculated in accordance with the law;
- the income calculated on the basis of the restoration of legal rights.
The Tax and Customs Administration applies this automatically. In view of the expected proceedings before the tax courts regarding the legality of this system, it is advisable – regardless of the method used – to lodge an objection in good time against final income tax assessments that include income from savings and investments (Box 3), in order to preserve your rights.
Flat returns
For the purposes of tax relief, the Tax and Customs Administration applies three asset categories, each with its own flat-rate return:
- bank balances: 0,00%;
- other possessions: 5,53%;
- debts: -/- 2,28%.
The flat-rate return on other assets was already known. Given the (price) losses incurred in 2022, investors will perceive this 5.53% as extremely high. The VEB has therefore already announced that it is considering launching a test case. See our article Test case concerning investments in Box 3 in 2022.
The flat-rate return of 0.00% on bank balances will not be a problem for anyone. The question, however, is what exactly is meant by ‘bank balance’. See, for example, our article Valuing the owners’ association reserve as a bank balance.
The negative return on debt, of 2.28%, is somewhat disappointing when set against the sharp rises in interest rates we have been experiencing since mid-2022. Assets in box 3, the purchase of which was financed by a loan, will, on balance, be taxed in 2022 at a rate of: 5.53% -/- 2.28% = 3.25% (unless the balance of total assets and total debts is less than the tax-free allowance).