Pay less tax in box 3?
This is how the rebuttal rule works.
Do you have assets in box 3? Then you pay taxes on them. But maybe that’s more than necessary. Recently, you can use the box 3 rebuttal scheme. With this you can prove that your actual return is lower than the fictitious return that the tax authorities use.
And that can significantly reduce your tax burden.
The Senate has now approved the Box 3 counter-evidence rule law. So the rules are final. Here we explain what this means for you, when you qualify and what you must do to take advantage of this regulation.
First, a little more about the arrangement.
The Supreme Court ruled last year that you can use the actual return if it is lower than the notional return. The new law follows the calculation rules that the Supreme Court gave.
Is your actual return lower? If so, you can appeal.
Is it higher? Then you don’t have to do anything – in other words, you don’t have to pay extra.
Not everyone can use it for every tax year. Below you can see when they can:
- Tax years 2021 through 2027
You can always claim for these years. From 2028, there will be a new box 3 system, based on actual returns. A bill for this is already before the House of Representatives. - Tax year 2020
You can make use of the scheme if your final assessment was not yet irrevocably fixed on December 24, 2021. Please note that you must file a request for ex officio reduction or submit the Form Opgaaf Werkelijk Rendement (OWR) no later than December 31, 2025. - Tax years 2019, 2018 and 2017
You are eligible if your assessment was part of the mass objection procedure and was not yet irrevocably established on Dec. 24, 2021. In addition, you must have filed a request for ex officio reduction on time:
2019: before December 31, 2024
2018: before December 31, 2023
2017: before December 31, 2022
Do you already have a final assessment that was irrevocably fixed on December 24, 2021? Then you cannot make use of the scheme. There is still a separate procedure (the MB+ procedure) for this group. If the Supreme Court decides that there is still a right to restoration of rights, you can still appeal to the scheme.
The rules for calculating the actual return are in the Box 3 Counter Evidence Act. We have summarized them in Appendix 1.
To make use of the scheme, you must show what your actual return is. You can do that with the Opgaaf Werkelijk Rendement (OWR) form from the Tax Office. You are obliged to use this form. Do you have additions? You can submit them within six weeks of submitting the form.
The Tax Office sets your return according to the law, even if you disagree with the calculation. You can then object or appeal.
Note letters from the Internal Revenue Service.
-
1
Attention letters.
The tax authorities send these to taxpayers whose tax assessment is not yet final. You will receive a separate letter for each tax year. Do you receive such a letter? Send it to us immediately.
-
2
Motivation letters.
The tax authorities send these to taxpayers who objected or requested an ex officio reduction. You get one letter combining several years.
The deadlines and what you need.
The deadline to file the OWR form depends on the type of letter and who filed your return:
| Situation | Term |
|---|---|
| Declaration without becon number | 12 weeks from date of attention letter |
| Declaration with becon number | 26 weeks from date of attention letter |
| After justification letter | Always 12 weeks, regardless of who filed the declaration |
The Inland Revenue does not deviate from the set deadlines.
If your OWR form arrives too late – for example, after the 12 or 26 weeks that apply after an attention letter – your return will be released and a final assessment will follow. Even an objection will then be settled as usual. So make sure you are on time.
How much information you need depends on your assets and how they are structured. In Appendix 2, we have listed the information you need for the most common assets and liabilities in box 3.
Because deadlines are tight, we recommend not waiting until you receive a letter from the Internal Revenue Service. Start collecting the necessary information ahead of time.
Will you get a tax refund?
Calculating actual returns is often complex and depends on your assets and returns.
But we can help you understand that.
What can we do for you?
There are costs associated with this assessment. For an initial assessment we charge a fixed price of € 250. For this we map for the years 2020 to 2023 (or 2024 if already completed) whether and for which years a reduction might be feasible.
At this price, we cannot yet calculate exactly if and how much the return was exactly lower. But we can give a targeted indication of whether it makes sense to collect all the data and carry out a more extensive analysis.
Would you like us to then calculate exactly what the refund is and complete and submit the OWR form to the IRS on your behalf? Of course you can.
This work will be billed on an after-the-fact basis. Please let us know if you would like to take advantage of this?
Would you like us to help you?
We are happy to do so! Contact us via the button below or let your regular contact know.