News item | 08-09-2023 | 2:15 PM
There is a great social desire to switch from the current flat-rate box 3 system (tax on capital income) to a system based on actual returns. The outgoing cabinet shares this wish. In recent years, research has been conducted into how a new system can be designed so that actual income is taxed, the so-called actual return. The results of this technical research have been included in a proposal that can function as a building block and tool for a new cabinet. Dutch people can provide input on the design of a new box 3 system through an internet consultation. With the results of the internet consultation, the new cabinet can possibly make a quick start with the further design and introduction of a new system, depending on the choices made by a new coalition. You can respond until October 20 via internetconsultatie.nl.
Although the outgoing cabinet can no longer introduce a new system, it is important to start internet consultation for the new system to avoid further delays. Postponing the internet consultation would make it virtually impossible for a new system to come into effect on January 1, 2027. The consultation should not be seen as the consultation of a fully-fledged bill, but as a tool for a new cabinet.
Design of new system
The premise of the system to be consulted is that the actual income is taxed, the so-called actual return. This actual return consists of the direct return, such as interest, rent and dividend, minus costs. In addition, the return achieved also consists of indirect returns, the positive or negative value development of, for example, shares or real estate. In principle, the value development is taxed annually. If there is a loss, the losses may be offset against box 3 income from other years. However, there will be a loss threshold.
For a number of assets, such as real estate, land, less than 5% packages in family businesses and start-ups and scale-ups, the starting point is to tax the value development upon realization, the so-called capital gains tax. Direct income, such as rent, is also taxed with a capital gains tax. Actual costs are deductible.
Lump sum for (first) holiday home
Some taxpayers have a (holiday) home for their own use in box 3. To keep taxation simple for this group, one of the proposals is to use a lump sum for this home in box 3. This lump sum is a fixed percentage of the WOZ value. In order to make use of this flat rate, requirements are set regarding the degree of personal use. For example, a home that is rented to a third party for the entire year will be subject to capital gains tax. In that case, the actual rental income and the value development (upon sale) are taxed. This also applies to other homes that a taxpayer may have for his own use in box 3 in addition to this one house. The first owner-occupied home (main residence) is still taxed in box 1, which does not change compared to the current situation.
Tax-free income
The proposal is also to replace the current tax-free allowance with a tax-free income in the new system. This means that part of the income earned from the assets is exempt from tax, instead of a certain value of the assets.
Follow-up
You can respond to the consultation until October 20. The results of the consultation will then be presented to the House of Representatives and the new cabinet. These results can then be used in further thinking and decision-making about the new box 3 system by the new Cabinet.