We recently told you about the government's plans regarding refund of overpaid taxes on Boxing 3 (Box 3). As of mid-April, the government has not yet decided on the target group of taxpayers who will be able to receive compensation. And finally, this issue has been clarified - only those who filed a formal objection to the tax in Box 3 for the tax years from 2017 to 2020 will receive compensation (at least at the first stage). of the year.
How to receive compensation
Compensation will be calculated and paid in automated mode. Compensation will be given to owners of bank savings or other assets, such as shares or "second homes", who have filed formal objections to the wrongful assessment of taxes in the so-called Box 3. Total such payments to the state will cost 2,8 billion euros.
Note! Webinars from the Nalog.ln team for May-June 3 (link: https://www.youtube.com/watch?v=DEjhKCh13dc).
Compensations are made on the basis of the decision of the Supreme Court of the Netherlands, adopted at the end of last year. Wherein taxpayers who do not file objections in time will not receive refunds yet. In the fall of 2022, the Supreme Court is expected to make another decision regarding the target group of taxpayers who did not file an objection.
Determining the amount of compensation
The amount of compensation will depend on the actual distribution of savings and investments of the taxpayer:
- For owners of bank deposits, the tax will be calculated based on current interest. In recent years, they have been almost zero.
- For investments (securities, real estate) the average return on investments will be taken as a basis, as it is now.
This approach is very different from the one that was used and caused mass protests.
Automatic refund
Taxpayers do not need to take any action to receive compensation. Payments will come automatically.
Further, starting from August, the issue of payments for all other taxpayers for whom the tax under Box 3 could have been incorrectly calculated will be resolved in stages. From mid-September, the circumstances with the payment of tax under Box 3 from 2017 to no decision was made by December 2020, 24.12.2021. From mid-October, cases from 2017 to 2020 will be considered for those taxpayers for whom an assessment has not yet been carried out at all.
All these groups of taxpayers will automatically be notified of the consideration of their issue, no action is required from them.
Are those who have not filed objections entitled to compensation?
The Supreme Court is expected to rule in the fall on whether people who fail to file timely objections to Box 3's incorrect tax assessment should also be eligible for compensation. The Cabinet of Ministers will then decide before the end of the year on the final target group for reimbursement.
Taxpayers who disagree with the decision of the Cabinet of Ministers still have the right to file a formal objection. And if such an objection is rejected, then this refusal can be appealed to the court on appeal.
What now?
If you filed your tax return on time this year with Box 3 completed, no revisions will be made for the time being. It is expected that only in August will be available a new version of the online tax return for 2021, taking into account the new approach to calculating taxes under Box 3. Taxpayers will be able to re-file their 2021 tax return if they wish.
The calculation of taxes for taxpayers who filed a declaration for 2021 before May 1 will be made on the basis of the old system. Taxes will have to be paid in the same amount as before. And only later, taking into account the decision of the Supreme Court in the fall of 2022, it will be possible to expect compensation.
Do you need to re-apply on a new form? First, let's wait for the appearance of this announced form. And secondly, you can get the answer to this question on individual tax advice at Nalog.nl.
Publication Date: 17.05.2022
