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Box 3? Adjust your provisional assessment for income tax 2023 before May 1, 2024!

Do you have assets in box 3? In certain situations, it may be advisable to adjust (or have adjusted) your provisional assessment for Income Tax (IB) 2023 before May 1, 2024. This is due to differences between the provisional and final fixed return percentages.


What is involved?

In 2023, box 3 is divided into three categories: bank and savings deposits, debts, and other assets, each with its own flat rate of return. The final flat rate of return for the bank and savings deposits and debt categories was determined at the end of January 2024.

As a result, when the Tax Authorities imposed provisional income tax assessments for 2023 (IB 2023) on box 3, they used a provisional fixed return of 0.36% for bank and savings deposits and 2.57% for debts. The final returns determined at the end of January 2024 differ significantly by 0.92% and 2.46%, respectively.

Provisional assessment too low

Due to these differences in final flat rates, you may owe more income tax for 2023, even with equal assets in both the provisional and final assessments. This means your provisional IB 2023 assessment is set too low.

Tax interest at 7.5%

If you are required to make an additional payment due to your final income tax assessment for IB 2023, you will be subject to a tax interest rate of 7.5% per annum on this additional amount. This can be avoided by either submitting your personal income tax return for 2023 before May 1, 2024, or by requesting a revision of your previously imposed provisional assessment for 2023 before May 1, 2024.

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