31 December 2023 Add expertise tag Add service tag Add country tag
Global Mobility Services International labor and cross border assignments Tax compliance
In this Chapter, the following topics will be discussed:
- Taxation of income from savings and investments (inkomen uit sparen en beleggen)
- The taxable basis in Box 3
- The amount of qualifying assets
- The amount of qualifying debt
- Exempt assets
- Facilitated investments
- What we can do for you:
Taxation of income from savings and investments (inkomen uit sparen en beleggen)
Income that originates from savings and investments is subject to tax as income in Box 3 in the personal income tax return.
The Box 3 income may be reduced withthe personal allowance.
Although one would expect that only assets held as saving or investment are taxed as “income from savings and investments”, the law makes no reference to the motive of owning assets. Only assets and liabilities which belong to income generated in Box 1 or Box 2 are not to be included in the taxable basis of Box 3. The taxable basis of Box 3 is in fact a residual category.
The taxable basis in Box 3
In 2021, the Dutch Supreme Court ruled in a lawsuit regarding the taxation of taxable income in Box 3. The Dutch Supreme Court has ruled that the Dutch method is not in accordance with international law. The calculation of the Box 3 income was adjusted by the Ministry of Finance. Under the 'old' method, it was assumed that part of the assets were saved and another part was invested. For example, if there were only savings, it was still assumed that part of the savings was invested. In the 'new' calculation of the Box 3 income, the actual distribution of the assets is taken into account, and no longer the fictitious distribution that was in place. The 'old' vs 'new' regime will be explained below.
Taxable basis in Box 3 in 2022 ('old regime')
Rather than taxing the actual income received from savings and investment, Dutch law assumes a return on investment on net assets (assets minus debts). The income from savings and investments in the first two brackets below is attributed to a savings part and an investment part (proportionally) at a rate of 1.818% and 4.366%, and and 5.53% for the third bracket in 2022. That outcome is subsequently assumed to be in return on investment.
| Taxable income from savings and investments (brackets) | Savings part -0.01% | Investment part 5.53% | Effective return on investment |
| Up to € 50,651 | 67% | 33% | 1.818% |
| From € 50,651 up to€ 962,351 | 21% | 79% | 4.366% |
| € 962,351 and more | 0% | 100% | 5.53% |
Taxable basis in Box 3 ('new' regime)
| Type of asset | Rate of return 2023 |
| Bank balances, savings and cash | 0.01% |
| Investments/ other assets | 6.17% |
| Debts | 2.46% |
It is possible to request the Dutch tax authorities from the tax year 2018 (in 2023) to apply the Box 3 income calculation based on the 'new' rules and the respective rates of returns that applies for those years, even if no objection was made for those years, based on a so-called 'ex-officio' request.
The net assets are taken into account at the value at the beginning of the tax year (in Dutch: 'Rendementsgrondslag'), only insofar this amount exceeds the threshold (in Dutch: 'heffingsvrij vermogen').
Special rules apply if the taxpayer has a fiscal partner. In essence each partner must account for his/her own savings and investments, but under circ*mstances the taxable basis and the threshold of each of the partners must be counted together.
If the taxpayer was not yet a Dutch taxpayer at the beginning of the calendar year, or the taxpayer died in the course of the year, the reference date is still the beginning of the year but the taxable basis must be determined pro-rata.
The amount of qualifying assets
The qualifying assets are the following assets which have a value in the market place:
- real estate (not main residence);
- rights directly or indirectly vested on real estate;
- tangible assets which are not for personal use of the taxpayer or the persons belonging to his/her household;
- tangible assets which are for personal use of the taxpayer or the persons belonging to his/her household but which mainly function as investment;
- rights vested on tangible assets;
- other economic rights, including cash and cryptocurrencies.
Receivables originating from Dutch or foreign tax laws or tax collection laws do in essence not qualify as assets.
Special rules apply for receivables originating from Dutch or foreign inheritance tax (in Dutch: 'Erfbelasting') and receivables originating from inheritance law on which rights are vested on the basis of inheritance law.
The amount of qualifying debt
Debt is defined as obligations with value in the market place, with the consideration that
- obligations which can result in a tax deduction ofpersonal allowancesare disregarded;
- obligations arising from Dutch or foreign tax laws or tax collection laws are disregarded;
- obligation arising out of the Inheritance Tax Law or equivalent law or equivalent foreign inheritance law may qualify as debt;
- qualifying obligations will only be considered debt insofar the accumulated value exceeds € 3,400 (2023), or if the taxpayer has a fiscal partner which liabilities should be counted together, € 6,800 (2023).
Special rules apply for obligations originating from Dutch or foreign inheritance tax (in Dutch: “Erfbelasting”) and obligations originating from inheritance law.
Exempt assets
Under certain conditions the following assets do not have to be included in the taxable basis for Box 3 income:
- forest and nature areas;
- certain real properties belonging to an estate listed on the basis of the Nature Conservation Act (in Dutch: “natuurschoonwet”), with the exception of built properties on these estates;
- objects of art and science, unless they are mainly owned as investment;
- rights on tangible assets originating from inheritance law provided they are for personal use of the taxpayer or people belonging to his/her household, and they are not mainly owned as investment;
- rights on payments under a life insurance, or life insurance in kind, or insurance for funeral services for the taxpayer, his fiscal partner or certain family members, provided that the insured sum per person does not exceed € 7,913 (2023);
- drawdowns from a facilitated blocked bank account in relation to the decease of the taxpayer, his fiscal partner or certain family members, provided that the sum per person does not exceed € 7,913 (2023);
- the right to receive lumpsum insurance payments in case of disability, illness or accident;
- the right to receive installments of the transfer price of a substantial shareholding;
- cash, including electronic cash in the form of a chip debit, and gift certificates which can be used for consumption purposes, up to an amount of
€ 596 (2023), or if the taxpayer has a fiscal partner during the entire year, € 1,192 (2023); - current installments of income and liabilities if they relate to a period of one year at most and the underlying asset also belongs to the taxpayer.
Facilitated investments
For certain investments the Dutch legislator has created incentives. This relates to qualifying green investments (in Dutch: "groene beleggingen")
What we can do for you:
We are professional tax lawyers and we can advise you on your personal tax position and handle the preparation and filing of your annual Dutch personal income tax return and other tax compliance matters on your behalf.
We have very competitiverates for individualsand we can prepare and file your personal income tax return (and take care of other personal income tax compliance) on the basis offixed priceswhich are agreed upon with you in advance.
The price for a specific tax return is dependent on your personal circ*mstances and the service which you wish to receive from us.
Please feel free to use ourONLINE FEE CALCULATORfor determining the fixed fee which you would have to pay us for the preparation of your personal income tax return.
