How is my box 3 income calculated on my provisional assessment 2023?
The box 3 income in your provisional assessment 2023 is calculated according to the new legislation. This means we use the actual distribution of your assets. In the calculation, we use rates of return that are close to the actual rates of return. See what percentages these are and how the calculation works.
Rates of return 2023
In the provisional assessment for 2023, we use provisional returns that are close to the actual rates of return for your box 3 income. These are the rates of return for 2023:
- bank balances, savings and cash: 0.01%
- investments/other assets: 6.17%
- debts: 2.46%
The percentages for investments and other assets are already fixed. The percentages for bank and savings deposits and debts are still provisional. We will determine these percentages in early 2024. We will use those percentages in your final assessment.
The old calculation method no longer applies
For the years 2017 to 2022, we calculated your box 3 income using the old and the new method. The most favourable method was then applied. This no longer applies for 2023. We will only calculate your box 3 income using the new method.
The calculation of your box 3 income 2023
This is how you calculate your 2023 box 3 income:
- Use the above-mentioned provisional 2023 rates of return to calculate the return per asset type on 1 January.
- Add the return on bank balances, savings and cash to the return on investments and other assets. You reduce the total by the return on deductible debts. This is your taxable return.
- In addition, you calculate your assets. These are made up of the total of the asset types you have. That is, your assets minus your debts. As for the debts, you first reduce them by the threshold. This is your capital yield tax base.
- You reduce your assets by the tax-free allowance. You now have the basis for savings and investments. You may divide the basis if you have a tax partner.
- You divide your basis for savings and investments by the capital yield tax base and multiply it by 100. Round off to 2 decimal points. This percentage is your share of the capital yield tax base.
- You multiply your taxable return by this percentage. The result is your box 3 income.
You will pay 32% tax on your box 3 income in 2023.
- 2023 calculation example without a tax partner
You have €150,000 in savings. You do not have a tax partner.
Step 1: calculate the return per asset type
Bank balances, savings and cash: €150,000 x 0.01% = €15
The taxable return is €15
Step 2: calculate your assets
Assets: €150,000
Deductible debts: €0
Total assets: €150,000 - €0 = €150,000Your total assets (capital yield tax base) are €150,000
Step 3: calculate the basis for savings and investments
The basis for savings and investments is the capital yield tax base minus your tax-free allowance.
The tax-free allowance in 2023 is €57,000.
The basis for savings and investments: €150,000 - €57,000 = €93,000.
Step 4: calculate your share of the capital yield tax base
Divide your basis for savings and investments by your capital yield tax base and multiply the outcome by 100. Round off to 2 decimal points.
Basis for savings and investments €93,000: capital yield tax base €150,000 x 100 = 62%
Step 5: calculate your income from savings and investments
The income from savings and investments is your taxable return multiplied by your capital yield tax base share percentage.
Income from savings and investments: €15x 62% = €9.
You pay 32% x €9 = €2 tax on your assets.
- 2023 calculation example with a tax partner
You have €350,000 in savings. You do have a tax partner.
Step 1: calculate the return per asset type
Bank balances, savings and cash: €350,000 x 0.01% = €35The taxable return is €35.
Step 2: calculate your joint assets
Assets: €350,000
Your total assets (is the joint capital yield tax base) are €350,000.
Deductible debts: €0
Total assets: €350,000 - 0 = €350,000
Step 3: calculate the basis for savings and investments
The basis for savings and investments is the capital yield tax base minus your tax-free allowance.
The tax-free allowance in 2023 is €57,000 per person, making €114,000 for you and your partner together.
The basis for savings and investments: €350,000 - €114,000 = €236,000.
You and your tax partner each declare half of the basis for savings and investments, that is €118,000 each.
Step 4: calculate your share in the capital yield tax base
Divide your basis for savings and investments by the capital yield tax base and multiply the outcome by 100. Round off to 2 decimal points.
Your basis for savings and investments €118,000 : capital yield tax base €350,000 x 100 = 33.71%.
For your tax partner, the outcome of this calculation is the same.
Step 5: calculate your income from savings and investment
The income from savings and investments is the taxable return multiplied by your capital yield tax base share percentage.
Your income from savings and investments: €35 x 33.71% = €11.
Your partner’s income from savings and investments: €35 x 33.71% = €11.
You pay 32% x 11 = €3 tax on your assets.
Your tax partner pays 32% x 11 = €3 tax on his assets
- 2023 calculation example with tax partner and various types of assets
You have €100,000 savings, investments worth €150,000 and a debt of €50,000.
Step 1: calculate the return per asset type
Bank balances, savings and cash: €100,000 x 0.36% = €10.
Investments and other assets: €150,000 x 6.17% = €9,255.
The return on the assets is in total €9,265.
Debts:
The threshold will be deducted from the debt. The threshold is €3,400 per person.
The deductible debt is: €50,000 - €6,800 = €43,200.The return on the deductible debts: €43,200 x 2.46% = €1,063.
The return on your debts is in total €1,063
The taxable return is €9,265 – €1,063 = €8,202Step 2: calculate your joint assets
Assets: €100,000 + €150,000 = €250,000
Deductible debts: €43,200
Total assets: €250,000 - €43,200 = €206,800Your total assets (the joint capital yield tax base) is €206,800.
Step 3: calculate the basis for savings and investments
The basis for savings and investments is the capital yield tax base minus the tax-free allowance.
The tax-free allowance in 2023 is €57,000 per person, making €114,000 for you and your partner together.
The basis for savings and investments: €206,800 - €114,000 = €92,800.You declare the entire basis for savings and investments, that is €92,800.
Step 4: calculate your share in the capital yield tax base
Divide your basis for savings and investments by the capital yield tax base and multiply the outcome by 100. Round off to 2 decimal points.
Your basis for savings and investments €92,800 : capital yield tax base €206,800 x 100 = 44.87%Step 5: calculate your income from savings and investments
The income from savings and investments is the taxable return multiplied by your capital yield tax base share percentage.
Your income from savings and investments: €8,202 x 44.87% = € 3,680
You pay 32% x €3,680 = €1,177 tax on your assets.