Boxing 3 objectors to receive compensation notices soon

In May we wrotethat the Dutch tax authority plans to pay compensation to those taxpayers who objected to the tax in Box 4 for the tax years from 3 to 2017 by August 2020 of this year. As of mid-July, everything is on schedule. The Tax and Customs Administration (Belastingdienst) says that in the coming weeks, taxpayers will receive letters with instructions for receiving compensation.

For the new calculation, the tax service will use the following percentages:

Each taxpayer will receive an explanation regarding the calculation of the amount of compensation in a letter. Also using online tool On the website of the tax service, you can make the calculation yourself. More official information about Boxing 3 is located here. 

60% of objectors will receive compensation

According to preliminary estimates, not all those who object to Box 3 will receive a refund. In many cases, the calculations are not in favor of taxpayers.

Consider an example. You have fiscal partner, whose assets in 2017 consisted of €100 in savings, €000 in investments and €300 in real estate. According to the new calculation, this person had to pay a tax of 000 euros, while according to the old calculation, the amount of tax was 200 euros. Thus, for this taxpayer, the current tax calculation system for Box 000 was more profitable. This person will not receive any refund of money back, but will not have to pay anything extra.

And such people will be about 40%. The calculation is based on the actual distribution of savings, investments and debts of the taxpayer:

• Compensation will mainly be received by taxpayers whose assets mainly consist of savings. People with savings are taxed based on current savings interest. In recent years they have been almost 0%. Taxpayers whose assets consist entirely of savings receive for 2017-2021. back almost the entire amount of the tax paid on Box 3.
• If a significant part of the assets were investments, then there has been a good return on them in recent years, so there can be no talk of any compensation. For investments in securities and real estate, the calculation is based on the average multi-year yield.

What will happen to those who didn't mind Boxing 3?

Previously we wrotethat the Supreme Court of the Netherlands ruled that there was no legal basis for compensation to taxpayers who did not file objections to Box 3. But this is not the end of the matter. In the fall, the government will again return to assessing the situation.

However, taxpayers who have not filed objections to Box 3 but still hope to receive compensation are not advised by the government to take any action yet. If they decide to expand the circle of persons who can receive compensation, people will be notified automatically.