Box 3 Explained
For Sophie’s investments, a fictitious return of 6.17% is assumed. The tax office considers her return to be €6,170, although she only earned €5,000.
Jan benefits by doing nothing, paying taxes on the lower fictitious yield (€360) instead of his real interest income of €500.
Sophie may want to file an objection because she is taxed on the higher fictitious return (€6,170) rather than her actual return of €5,000. Filing an objection can lead to a tax correction based on her actual return.
Unfair Tax on Your Investments?
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Frequently Asked Questions
Box 3 taxation applies to savings and investments by taxing assumed (fictitious) returns rather than actual income earned.
If the assumed return used by the tax office is higher than your actual return, you may have overpaid and could qualify for a refund.
Anyone with savings or investments taxed under Box 3 from 2019 onwards can apply for redress if the calculated return was higher than the actual return.
You’ll submit your actual returns, and if the tax office finds you were overcharged, you’ll receive a refund. This process varies for finalized and non-finalized tax assessments.
Yes, especially if your real returns were significantly lower than the fictitious return. Filing an objection could lead to reduced tax payments or a refund.
Objections must be filed within 6 weeks of receiving a finalized tax assessment. For non-finalized assessments, a request for reduction can be submitted by mid-next year.
You can apply only for the years that are beneficial to you. However, redress must be applied for annually—it isn’t automatic.
We offer a “No cure, no pay” model, with service packages ranging from €999 to €2,499 (excl. VAT), depending on the complexity of your case.
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