Gifts are also deductible from profits on which corporate income tax (Vpb) is payable. Corporate income tax is payable by an N.V., B.V. and cooperative society, as well as by a foundation and association (to the extent that the latter operate a business).
They must be gifts (favours out of generosity):
- which are substantiated by written records;
- and are done to a ANBI (Public Benefit Organisation) or to a support foundation SBBI (Social Advocacy Institution).
Maximum deduction is allowed in a return year:
- 50% of profit (if there is a loss, the gift deduction cannot be claimed);
- but never more than € 100.000.
In the case of a B.V. or N.V. with one shareholder, a gift from the B.V. or N.V. may (partly) be motivated by the personal needs of the shareholder. Expenses that satisfy the shareholder's personal needs cannot, in principle, be charged to the B.V. or N.V.. These expenses lead to a distribution of profit (dividend), on which substantial interest tax is due, followed by the expense from the shareholder's personal assets.
In a decision dated 28 September 2015, the State Secretary of Finance indicated that his interpretation of the gift deduction in Vpb is that a gift by a B.V. or N.V., which meets the conditions for the gift deduction, does not qualify as a distribution. He added that he approves this to the extent necessary.