Netherlands: Rebuttal provision in Box 3 (“wealth tax”) approved by upper house of Parliament
netherlands-rebuttal-provision-box-3-wealth-tax
The upper house of Parliament on July 8, 2025, adopted the Rebuttal Provision Box 3 Act, introducing a mechanism for individual (personal) income tax purposes in Box 3 (wealth tax), following a directive from the Dutch Supreme Court.
The legislation serves as a temporary measure until the new Box 3 regime is implemented, likely by January 1, 2028, and addresses the Supreme Court's ruling that the Box 3 regime, in place since 2017, violated the European Human Rights Convention. Taxpayers can seek compensation (i.e., tax refund) if they prove their actual return on investment is less than the flat-rate return applied since 2017.
The legislation applies retroactively to January 1, 2017, and January 1, 2023, offering taxpayers options for determining Box 3 income, including the actual return method. The mandatory OWR (opgaaf werkelijk rendement (statement on actual return on investment)) form, available from July 10, 2025, must be used for invoking the rebuttal provision, with specific submission deadlines.
Read a July 2025 report prepared by the KPMG member firm in the Netherlands