Bill on the Box 3 Actual Return Act submitted to the House of Representatives
On 19 May 2025, the bill on the Box 3 Actual Return Act was submitted to the House of Representatives. The bill represents the next step in the process to tax the realised return on wealth in Box 3. The aim is to introduce this new system by 1 January 2028.
Run-up to the bill on the Box 3 Actual Return Act
In publishing the Outline Policy Document in 2022, the government took the first steps towards a new Box 3 tax system. The next step was the publication of the consultation version of the Box 3 Actual Return Act, in September 2023. After the Council of State had issued a negative opinion last December, the government nevertheless decided to go ahead with this bill, albeit with some adjustments. The bill on the Box 3 Actual Return Act, which includes a number of adjustments compared with the consultation version, was submitted to the House of Representatives on 19 May 2025. The aim is to implement this new system by 1 January 2028. If this date of entry into force is to be met, the House of Representatives will need to pass the bill on 15 March 2026 at the latest. Below we discuss the content of this bill in greater detail.
Content of the bill on the Box 3 Actual Return Act
Combination of tax systems
The underlying principle of the Box 3 Actual Return Act is that tax is levied on the basis of the actual return on wealth realised. The main rule to be applied in this respect will be a capital growth tax. A capital growth tax involves annual taxation of regular income (such as interest, rent and dividends) as well as realised and unrealised value development of assets. A major consideration for the government is that this will prevent long-term tax deferral. On top of that, this system will release taxpayers, banks and insurers from keeping long‑term records of the cost prices of assets.
However, taxpayers may face liquidity problems as a result of the capital growth tax, especially for less current assets. To tackle this issue, immovable property and shares in start-ups will be subject to a capital gains tax, with positive and/or negative value increases only being taxed upon realisation or termination of the tax liability in the Netherlands. This exception had initially been intended to also apply to shares in family businesses, but this idea was abandoned due to possible state aid aspects. For already owned assets, the initial value will be the value as at the date when the act enters into force (which is expected to be 1 January 2028). The established WOZ value (the value for the purposes of the Valuation of Immovable Property Act) for the calendar year 2029 will be used for residential properties, with the value reference date being 1 January 2028.
As a common denominator, both the capital growth tax and capital gains tax are based on profit determination rules. This means, for example, that the arm's length principle is introduced into Box 3 and that taxation is based on nominal income. Hence, within Box 3 non-arm's length transactions are adjusted to an arm's length standard.
The initial idea had been to only tax the net income from bank and savings balances, because the legislator did not want to unnecessarily complicate the Box 3 levy for these assets. However, it was ultimately decided to also include changes in value (such as currency results) in the levy, as this would be more in line with the system applied.
A similar simplicity motive formed the basis for how the legislator wanted to tax a first home in Box 3 that is intended for own use. Provided its value would not exceed EUR 1.2 million, such home would be fully taxed at a flat rate. Nevertheless, because the different treatment raised several questions this intention was cancelled as well.
Tax system
The new Box 3 system is based on each taxpayer declaring their own income. The ownership of assets is decisive in this respect. However, for tax partners the income is determined jointly and a free allocation applies.
Under the new system, all assets and liabilities currently included in the capital yield tax base of Box 3 will continue to fall under the scope of this levy. Existing exemptions will be maintained except for the exemption for green investments and short-term instalments of income and liabilities. The exemption for remission benefits relating to impaired receivables is a new component. The exemption applies insofar as the benefit exceeds the result in the year itself and losses from other years.
Another change relates to the valuation of rights of enjoyment. The government’s original intention had been to value these rights at nil. As a result, for the beneficiary to the enjoyment the full purchase price for the right of enjoyment would be immediately deductible upon establishment, while for the bare owner it would be taxed. Ultimately, the choice has been made to prescribe capitalisation of the purchase price paid, after which the value of the right of enjoyment is to be phased out linearly over the establishment period of the right. Only in respect of the purchaser of the bare ownership of an immovable property or shares in or profit certificates of a start-up, will the increase in value not be taxed until realisation.
A fixed-rate addition for properties will apply to immovable properties that are not let. This addition is 3.35% of the value of the immovable property at the start of the calendar year. Three categories can be distinguished:
- for immovable properties that are let for the whole year or almost the whole year (at least 90%), the regular rental income will be taxed;
- for immovable properties that are not let for the whole year, the fixed-rate addition for properties will be taken into account; and
- for immovable properties that are let for part of the calendar year, tax will be levied on the highest of the rental income or the addition for properties.
Expenses related to the result from assets and liabilities are basically deductible, provided that they have been incurred solely for the purpose of acquiring, collecting and preserving income. What’s more, some deduction restrictions have been adopted from the method for determining business profits.
A new feature is the possibility to set off losses in Box 3. It will now be possible to indefinitely carry forward negative results from assets and liabilities. Initially, a one-year loss carry-back would be provided for as well. But that intention was cancelled due to the implementation costs involved and the high budgetary loss. However, the setoff of losses is subject to a threshold of EUR 500. Only a Box 3 loss exceeding this threshold will be taken into account.
Finally, the tax-free wealth in Box 3 is replaced by a tax-free result per taxpayer. The amount of this tax‑free result is set at EUR 1,800 per taxpayer. In addition, this dovetails with a flat tax rate of 36%.
Information
In the new set-up, too, the information needed for the Box 3 levy will largely come from banks and other financial institutions, especially where this involves bank deposits, securities and other financial products. Nevertheless, since greater reliance will have to be placed on taxpayers themselves, a statutory requirement to keep records is provided for in respect of Box 3.
Entry into force
The bill on the Box 3 Actual Return Act being submitted to the House of Representatives heralds the next phase in the parliamentary process. As mentioned earlier, the aim is to implement this new system by 1 January 2028. To meet this date of entry into force, the bill must be passed by the House of Representatives on 15 March 2026 at the latest.
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