Box 3 is seen by many as a type of net-wealth taxation. For Box 3 your assets are deemed to generate a fictional 4% annual return on investment. This fictional income is regardless of actual investment income or losses. The fictional income revenue is calculated over the net sum of your assets.
Starting 2011 and after, a reference date of January 1st of each fiscal year is used to establish the net sum of your assets. For fiscal years before 2011, an average of the net sum of your assets on the reference dates of January 1st and December 31st of each fiscal year is used for the Box 3 calculation.
The net sum of your assets is determined as all assets minus all debts.
- bank accounts;
- stocks and shares;
- a second home that you own (besides your primary home that you own);
- property that is rented out to others;
- certain types of financial instruments, like bonds and warrants;
- precious metals.
- personal loans;
- credit card debts;
- overdraft balances;
- mortgage loans on a second home;
- outstanding payments for Dutch inheritance tax;
- outstanding payments for Dutch income tax is not considered a debt.