Donations for Tax Minimization in the Netherlands

Both Dutch companies and individuals are entitled to various tax benefits in this country. Among these, tax deductions and allowances are offered on a regular basis by the tax authorities in the Netherlands, in accordance with the legislation which imposes certain conditions for granting them.

It is useful to know that the Dutch authorities encourage donations which can represent very good and legal tax optimization methods in this country. Our company registration agents in the Netherlands can offer more information on the tax minimization solutions available for companies.

Types of donations used for tax minimization in the Netherlands

As mentioned above, both companies and individuals in the Netherlands can make donations under which they can benefit from various tax deductions and exemptions. The following types of donations qualify for these tax advantages, among which tax deductions are the most employed:

• -          donations made to churches can offer tax advantages to individuals and companies;
• -          donations made to charities can also be excellent tax minimization solutions;
• -          donations made to scientific organizations can also be employed by Dutch companies;
• -          donations made to non-profit organizations or NGOs in the Netherlands;
• -          donations made to cultural organizations can also benefit from tax deductions.

In order to benefit from these deductions, the organizations, as well as the applicants for the deductions must comply with certain requirements.

You can rely on our Dutch company formation consultants if you need help in registering a company.

How to benefit from tax deductions from donations in the Netherlands

The following criteria must be respected in order for companies and individuals residing in the Netherlands to benefit from tax deductions on their donations:

• -          the organizations must be certified by the tax authorities and must bear the ANBI seal;
• -          the company or individual must donate at least 1% of the total income;
• -          the maximum amount of the donation must be 10% of the taxpayer’s income;
• -          the taxpayer must be able to prove the donation to the Dutch tax authorities, through a bank statement.

For full information on how to obtain tax deductions in the Netherlands, please feel free to contact us.