The Supreme Court has recently issued a new decision regarding the determination of tax in box 3 based on actual return. In this case, it was established that the actual return—including that on foreign real estate—was lower than the notional return. The Supreme Court ruled that the return on that foreign real estate will not be taken into account in assessing the actual return as defined in the June 2024 Supreme Court rulings.
For the application of the Box 3 Counter-Evidence Regulation Act, adopted by the Senate on July 8th, the total actual return must be lower than the notional return. It is expected that the return on foreign real estate must be taken into account for this purpose.
We expect that several more court rulings on the old and current/new legislation will follow before complete clarity is achieved regarding the relevance of foreign real estate for determining the actual return.
We are, of course, happy to assist you in assessing whether you are eligible for a reduction in box 3 tax if your actual return was lower than your fictitious return.
