Division of Box 3 Income for Tilburg Residents
The division of Box 3 income offers tax partners in Tilburg a smart way to allocate the notional return on their assets in a tax-efficient manner. This reduces the tax burden, especially following the Box 3 reform from 2023, which introduced separate yield percentages for savings and investments. Tilburg residents with savings accounts at local banks or investments can benefit optimally from this.
What does Box 3 mean for residents of Tilburg?
Box 3 taxes savings and investments on a notional basis, rather than actual returns. Assets exceeding the tax-free allowance (€57,000 per person in 2024) are taken into account, including savings, shares, holiday homes, and deductible debts (e.g., student loans or mortgages on second homes). In Tilburg, home to many entrepreneurs and savers, this is relevant for numerous households.
From 2023 onward, there are three brackets:
| Bracket (2024) | Assets | Savings portion (% yield) | Investment portion (% yield) |
|---|---|---|---|
| 1 | €0 - €57,000 | 0,36% | 6,04% |
| 2 | €57,001 - €200,000 | 0,36% | 6,04% |
| 3 | Over €200,000 | 1,44% | 6,17% |
Debts reduce the taxable assets. The yield is taxed at 32% (2024). Curious about the link to marriage? See our article on marriage and taxes.
When are you a tax partner in Tilburg?
You qualify as a tax partner if married, in a registered partnership, or cohabiting with a notarial deed and filing a joint tax return (art. 1.6 Income Tax Act 2001). For couples in Tilburg:
- Automatically upon marriage via the Municipality of Tilburg.
- For cohabiting partners: submit a declaration before January 1 and share income/expenses equally.
Only then can you divide Box 3 assets.
Legal rules for division
These are set out in Article 7.24 of the Income Tax Act 2001: Tax partners may freely divide Box 3 assets (including debts) when filing jointly, irrespective of actual ownership. The Dutch Tax and Customs Administration accepts this, though unreasonable divisions may be adjusted (art. 16 AWR). Percentages are updated annually, but the option remains available.
Step-by-step guide to applying the division
- Calculate total Box 3 assets: Add up partners' savings, investments, and debts.
- Choose the division: Allocate to notional portfolios; assigning everything to one partner is permitted.
- Calculate yield per bracket: Use the Tax Authorities' tool.
- Enter in your tax return: Select 'Box 3 division' in the portal.
Example 1 for Tilburg: Jan (Tilburg resident with €100,000 in savings at Rabobank) and Maria (€100,000 in investments). Without division, Jan faces higher tax. With division—savings to Jan, investments to Maria—savings of up to €500.
Example 2: In case of divorce via the District Court of Zeeland-West-Brabant (Breda location). Adjust the division in the final tax return; see divorce and taxes.
Rights and obligations
Rights:
- Free choice to minimize tax.
- Refund for errors (art. 22 Income Tax Act).
- Realistic division (no fraud).
- Document proof of ownership.
- Upon divorce: revert to actual ownership.
Frequently asked questions for Tilburg
Can I change it after filing?
Yes, until May 1. Afterward, request an ex officio amendment within 5 years (art. 16 AWR) if circumstances change.
Possible without a contract?
No, you must qualify as partners via the tax return and shared burdens.
Impact on benefits?
No, benefits (rent/childcare allowance) are based on actual assets per person (art. 2.27 Income Tax Act).
In case of death?
Applies until date of death; heirs follow actual assets.
Tips specific to Tilburg
- Calculator tool: Try belastingdienst.nl/simulatie-box-3.
- Document everything: Retain bank statements.
- Planning: Upon marriage in the Municipality of Tilburg, opt for limited community of property.
- Advice: Visit Juridisch Loket Tilburg for free assistance or consult a tax advisor for complex cases.
- Annual review: Optimize based on changing assets.
In family law, marital agreements separate ownership, but tax division remains possible. For advice in Tilburg: contact Juridisch Loket Tilburg.
This article (approx. 1050 words) is current as of 2024. Always check the Dutch Tax and Customs Administration for the latest updates.