The cabinet presents the bill for the evidence regulation box 3 to the House of Representatives. With the evidence regulation, the cabinet offers additional legal restitution in box 3, as judged by the Supreme Court. Taxpayers will have the opportunity to demonstrate the actual return achieved. If this amount is lower than the previously assessed expected return, they will receive a refund of the overpaid tax. They can use the form for the actual return declaration, which will be available starting this summer. The Evidence Regulation Act is a temporary solution until the expected Act on actual return box 3 in 2028.

State Secretary Van Oostenbruggen (Taxation, Tax and Customs Administration): “With this bill, we are taking the next step in the recovery operation for box 3. It is clear that the evidence regulation demands a lot from both taxpayers and the Tax Authorities. Taxpayers will be able to declare their actual returns starting in the summer of 2025 via a form on the Tax Authorities website. We know that this will not be easy for many taxpayers, especially since the form is being used for the first time. The Tax Authorities will inform people as best as possible, for example, by sending letters and providing information on the website. People who need extra help filling out the form can also receive personal assistance from the Tax Authorities.”

The so-called Kerstarrest of the Supreme Court revealed in 2021 that the taxation in box 3 since 2017 is in violation of the European Convention on Human Rights. The Act on legal restitution was introduced for this purpose. The Supreme Court ruled in June 2024 that this restitution is not sufficient in all cases. Taxpayers have the right to demonstrate what return they have actually achieved. The Supreme Court has provided principles for determining the actual return. With this bill, the cabinet wants to convert these principles of the Supreme Court into legislation. The progress of this bill is separate from the assessment in the spring decision-making about the final coverage caused by the postponement of the Act on actual return box 3.

Taxpayers do not need to do anything for now. In the summer, the form for the Actual Return Declaration will be available via My Tax Authorities, which will allow the actual return from 2017 to be demonstrated. The Tax Authorities do not have this information.

The Tax Authorities will support people as best as possible through letters and information on the website. People who need extra help filling out the form will also be able to receive personal assistance in various ways. They can call the Tax Phone, and if more support is needed, they can make an appointment at a tax office or a support center nearby. The Tax Authorities are also allocating extra staff for this. Starting with the tax return for 2025, the possibility of evidence will be included in the normal income tax return.

In the current box 3 system, a fixed return is calculated. This is a fixed percentage that is based on the expected return on the assets in box 3. These return percentages are updated annually to best align with the actual return. With the evidence regulation, taxpayers have the opportunity to demonstrate the actual return per year. If this is lower than the fixed rate, they will receive a refund of the overpaid tax. If the return is higher than the fixed rate, they do not have to pay anything extra.

The Supreme Court has established clear rules regarding what actual return precisely means. The cabinet adheres to this. The return on the entire box 3 assets must be included in determining the actual return. This includes received and payable interest, received dividends on shares, and rental income from a rented holiday home. The appreciation or depreciation of the assets is also taken into account.

For determining the actual return for additional restitution, the Supreme Court states that losses cannot be offset against other calendar years. Costs, such as advisory costs for the purchase of investments or maintenance costs for a holiday home, are also not taken into account. An increase in the value of an asset as a result of investments, such as the improvement or expansion of a holiday home, is not part of the return.

The Supreme Court has indicated that personal use of real estate, such as a holiday home, in principle falls under the return that is taxed in box 3. However, determining how this return should be calculated is complicated and requires choices from the legislator. The cabinet has decided that this return does not need to be declared for the years in the past. This applies from 2017 to 2025. For the years 2026 and 2027, this must be declared when providing evidence.

The cabinet does not find a fixed system based on fixed rates and an evidence regulation desirable and is therefore working on a system where the actual return is taxed. The introduction of the new system in 2028 has been thoroughly explored and is feasible. The aim is to submit the Act on Actual Return Box 3 to the House within a few weeks.