Netherlands: “Box 3” (wealth tax) regime also contrary to EU law because flat-rate returns still in use
A Supreme Court decision concerning whether “Box 3” regime was contrary to EU law because flat-rate returns were still in use.
“Box 3” (wealth tax) regime also contrary to EU law because flat-rate returns still in use
The Supreme Court on June 6, 2024, held that the current “Box 3” (wealth tax) regime is also contrary to the European Convention on Human Rights (ECHR) because tax returns computing the Box 3 tax using a flat rate of return on assets (rather than the actual rate of return) are still in use.
The Supreme Court (Hoge Raad) in December 2021 previously held that the Box 3 tax regime for the years 2017-2022 was contrary to the ECHR because it was based on a flat rate of return on assets.
Read a June 2024 report prepared by the KPMG member firm in the Netherlands
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