US tax return

Foreign tax credit for Box 3 income

USA: investment yield tax (BOX 3) is income tax

In response to questions of US-citizens living in the Netherlands, the United States competent authorities published a revenue ruling (Revenue Ruling 2002-16) concerning the investment yield tax levied in the Netherlands. This revenue ruling officially confirms that the Netherlands' investment yield tax paid by US-nationals or US-citizens is fully creditable against the United States income tax.


The investment yield tax is one of the components of a revised income tax act in the Netherlands - which became effective on January 1st, 2001 - and reflects a new approach in taxing capital income.

This ruling will be published in the "Internal Revenue Bulletin 2002-15" of 15 April 2002.