The Inland Revenue has again started imposing final income tax assessments for 2021 and 2022. The imposition of these assessments was postponed by the Tax Administration in view of all the discussions around box 3 (income from savings and investments).
However, with the deadline stipulated in the law looming in the course of 2025, within which the assessments must be imposed, the Tax Administration has moved to impose the assessments. The income in box 3 is determined in those assessments on the basis of the flat-rate system, as it is incorporated in the returns.
Need action?
The obvious question is: should you take action when you receive a final income tax assessment for 2021 and/or 2022?
The equally obvious answer is: that depends ....
If you only believe that your actual return is lower than the flat rate return used to calculate your income from savings and investments, you do not need to take any action. The Inland Revenue will still reduce the calculated tax when you prove your lower return with the OWR form (this form is expected to become available over the summer).
But in the following situations, it is important to file a timely (pro forma) objection:
- you want (possibly) a different distribution of joint income and deductions between you and your tax partner based on the actual return (if you do not file an objection, the distribution will remain as processed in the filed return);
- you do not agree that the deduction of expenses, for example on your rental income, is not taken into account when determining your actual return (but then you have to reckon that the Tax Office will reject your appeal and you will have to get your right through the tax court).
Villataks
These assessments may also include the so-called villa tax, which can be objected to (pro forma). More on this in our article Object to villa tax?.