Today, June 6, 2024, the Dutch Supreme Court (“Hoge Raad der Nederlanden”) ruled on the Restoration Act for Box 3 (“Wet rechtsherstel box 3”) and the Box 3 Bridging Act (“Overbruggingswet box 3”). The essence of the ruling is clear: these laws also violate the treaty-based prohibition of discrimination and the right to property. A violation occurs in cases where the notional return is higher than the actual return.
Specifically, this means that if the actual return is lower than the notional return of Box 3, tax is only due on the actual return. For the calculation of the actual return, the entire wealth, including bank balances, must be taken into account. The actual return encompasses both direct and indirect returns, including (unrealized) value increases or decreases of assets.
The Supreme Court’s ruling may result in a reduction of the tax owed. To obtain a reduction in the tax assessment, it is up to the taxpayer to demonstrate that their actual return is lower than the notional return.
If you wish to understand what this means for your situation, please contact your representative at STP Tax or email info@stp.nl.
