Not only donations in the form of money, but also donations in kind are deductible. With effect from 1 January 2024, however, under stricter conditions.
Gift deduction
For income tax purposes, they are deductible (personal deduction):
- periodic donations;
- other gifts.
Periodic gifts are fixed regular benefits that end on the giver's death and that:
- Are recorded in a notarial or private deed and;
- for five or more years;
- pay out at least annually and;
- have been made to an ANBI or to an association with full legal capacity, which is not subject to corporate income tax and has at least 25 members.
Other donations are donations to non-profit organisations (ANBI) and to support foundations SBBI.
In kind
Gifts in kind are all gifts that take a form other than money. In practice, these gifts often involve art and antiques. A periodic gift in kind is, for example, when a work of art is given on loan to a museum and a fee is waived.
From 1 January 2024, donations in kind are subject to the additional condition that they are deductible insofar as the fair market value follows from an independent valuation report or an invoice. This condition applies if the total of gifts in kind (periodic gifts and other gifts) in a calendar year exceeds €10,000 (€20,000 for tax partners), but even if the total of gifts does not exceed this threshold, the (value of the) gift must of course be made plausible.
The threshold will apply to periodic gifts for which the obligation is entered into by private or notarial deed on or after 1 January 2024.
The €10,000 threshold will also apply to the deduction of donations for corporate income tax purposes.
The conditions imposed on the valuation report are not yet known. As far as possible, these conditions should guarantee the independent professional opinion in the valuation report. An invoice will be subject to the condition that it is recent and concerns a transaction between independent third parties.
Ceiling
As of 1 January 2023, a condition has already been added to the deduction of periodic gifts. This means that the deduction is limited to €250,000 in periodic gifts per calendar year (for tax partners, the ceiling is €250,000 for their joint periodic gifts).