Signal equity Box 3

Stichting Inlichtingenbureau

Assets can affect the right and amount of a benefit. Stichting Inlichtingenbureau (IB) establishes whether a person on social assistance benefit has assets above the set limit (tax-free assets). If so, IB issues a signal about this to the municipality.

Last change on 7th of March 2025, at 10:25 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: DPIA
• Status: In use

General information

Theme

Social Security

Begin date

Field not filled in.

Contact information

https://www.inlichtingenbureau.nl/Over-ons/Contact

Link to publication website

https://www.inlichtingenbureau.nl/Beleidsterreinen/Werk-en-Bestaanszekerheid/Rechtmatigheidscontrole/Inkomsten-box-1-en-vermogen-box-3

Responsible use

Goal and impact

Municipalities receive information through the IB whether total assets in Box 3 exceed the tax-free threshold amount allowed for the fiscal year. This information helps municipalities check whether a person is entitled to social assistance benefits. Municipalities can thus compare a benefit recipient's assets with the information provided by that person.

There is a limit for how much assets a person may have while receiving social assistance. Are the assets higher than this limit? Then the benefit usually stops.

These assets can include:

- Bank and savings balances in the Netherlands and abroad;

- Shares, bonds and options that do not belong to a substantial interest;

- The non-exempt part of social investments;

- The non-exempt part of investments in venture capital;

- Second home, for example a holiday home;

- Other immovable property, for example a house that is rented out;

- The non-exempt part of your endowment insurance policies;

- A share in an undivided estate;

- Share in the assets of the Owners' Association (VvE).

Considerations

The 'Signal vermogen Box 3' is part of the information service Samenloopsignalering. For this, an overarching algorithm is described which answers general questions. For signal assets Box 3, only specific issues are addressed.

The IB exchanges data with the Tax and Customs Administration (BD). If it appears that a citizen has more Box 3 assets than the tax-free assets applicable for that tax year, IB reports this to municipalities. This is done using a reference date of 1 January as the BD does for the income tax return. This indicates the presence of potentially too high assets to qualify for (full) assistance. Because the limits for Box 3 assets are much higher than the asset limits from the Participation Act. If a Box 3 signal arises, the municipality can use this signal to further investigate whether there are still (too) high assets and/or how these assets have decreased during the year.

The algorithm ensures that municipalities only receive data on their own residents on welfare benefits, and only if there is a change, which may affect the allowed assets. This protects citizens' privacy. An advantage of this algorithm is that it works much faster than when someone does it by hand. This saves municipal employees a lot of time. Also, fewer mistakes are made this way.

Human intervention

For the IB itself, this algorithm does not involve human intervention. The algorithm executes rules devised by humans and is not 'self-learning'. However, the IB does ensure that the processing process has been done properly. The municipality decides whether and how to deal with a change.

Risk management

Citizen privacy is a major concern. Therefore, a 'Privacy Impact Assessment' is carried out periodically to determine whether there are risks and what can be done about them.

Legal basis

For the generic basis of the processing of personal data in the context of the "Samenloopsignalering" information service, see PIA Samenloopsignalering Algemeen".

Article 34 of the Participation Act (Pw) defines what is meant by (permitted) assets during the social assistance benefit.

Basis for processing Belastingdienst (source)

• Section 64(1)(c) and (14), Section 68, Pw
• Section 45(1)(c) and (12), Income Support for Elderly and Partly Incapacitated Former Self-Employed Persons Act (IOAZ).

Basis for processing IB:

• Section 64(3) and Section 68, Pw
• Section 63 Work and Income Implementation Structure Act (SUWI Act), Section 5.24, paragraphs 1 and 3, SUWI Decree & Sections 6.2 and 6.6 SUWI Regulation
• Covenant, Service Agreements (SA) and Technical Agreements and Procedures (TAP)

Basis of processing Municipalities:

• Chapter 5 'Implementation' and Chapter 6 'Powers and facilities municipalities' Pw
• Article 62 SUWI Act

See also the Data Register Stichting Inlichtingenbureau (Processing Activities Act SUWI/ Participation Act) on the IB website to be found via the following page: https://www.inlichtingenbureau.nl/Privacy-en-Veiligheid/Privacy-en-burgers.

Links to legal bases

Participatiewet: https://wetten.overheid.nl/BWBR0015703/2024-01-01

Link to Processing Index

https://www.inlichtingenbureau.nl/Over-ons/Privacy-en-Veiligheid/Privacy-en-burgers

Impact assessment

Data Protection Impact Assessment (DPIA): https://www.inlichtingenbureau.nl/Over-ons/Privacy-en-Veiligheid/

Operations

Data

The municipality's benefit file (A):

See the concurrence algorithm for this.

https://algoritmes.overheid.nl/nl/algoritme/samenloopsignalering-stichting-inlichtingenbureau/15422688

Demand file to the Tax Office (B):

- BSN

- Tax year

- Municipal code

Answer file to the Inland Revenue (C):

- BSN

- Box3 Tax year

- Indication indicating whether there is a tax partner

- Indication that there is balance above threshold

- Municipal code

- Box3 Tax year

- Indication indicating whether there is a tax partner

- Indication that there is balance above threshold value

The IB creates a signal based on the data in case of concurrence and stores it (temporarily) (D).

Signal to the municipality (E):

- See algorithm concurrency signalling for the data that are by default part of a signal.

Below are the data specific to this signal:

- Box3 Tax year

- Indication that there is a tax partner

- Indication that there is a balance above the threshold amount: The amount of the threshold amount (tax-free capital box 3). This value is set and published annually by the Tax Office.

Technical design

A. A municipality delivers a file relating to the current social assistance population to the IB monthly via the secure client portal. After each delivery, a processing report is published, listing any errors in the delivery;

B. A (demand) file with which data are periodically (monthly) requested in bulk from the Tax and Customs Administration regarding the municipal / SVB benefit populations;

C. The supply of the Tax and Customs Administration's (bulk) response file containing the indication of assets above the threshold amount of tax-free assets (the "declarant's share in basis") as it applied for the tax year in question;

D. The IB creates and stores (temporarily) a signal based on the data in case of concurrence;

E. In case of overlap, the IB makes a signal available to municipality (and/or SVB).

External provider

Internally developed