The Dutch fiscal law ‘Geefwet’ and its advantages
Between January 1st 2012 and December 31st 2017 there is a special tax law in place, which makes it more advantageous to make a charitable donation. * This so called Geefwet allows you to claim your donations to organizations with an ANBI status (official charity by Dutch law) with an additional 25% for tax benefits. This fiscal advantage is valid for donations that total a maximum of €5,000 annually. In addition you enjoy extra fiscal benefits for periodical gifts with an annuity construction for five years and upwards. Your gift is then fully tax-deductible. For the Rijksakademie Circle of Friends Loyens & Loeff will draw up a notarial deed free of charge.
Rijksakademie Circle of Friends
Below a financial statement summarizing the net and gross annual contributions to the Rijksakademie Circle of Friends from January first 2012. The calculation is based on a periodic donation and an income tax rate of 52%*.
Contribution to the Rijksakademie € 1,500
net cost gift € 525
(used to be € 720)
multiplier 125% x € 1,500 = € 1,875
with 52% decuctible tax rate € 975
Contribution to the Rijksakademie € 5,000
net cost gift € 1,750
(used to be € 2,400)
multiplier 125% x € 5,000 = € 6,250
with 52% deductible tax rate € 3,250
Contribution to the Rijksakademie € 15,000
net cost gift € 6,550
(used to be € 7,200)
multiplier 125% x € 5,000 (= maximum) = € 6.250 + € 10,000 = € 16,250
with 52% deductible tax rate € 8,450
* For income tax rate of 42%, the net amounts are Associate
€ 712.50, Patron
€ 2,375 and Trustee
Advantage of a Periodic Donation
A single donation is restricted tax-deductible. The total annual donations should be higher than 1% (threshold) and can up to 10% (ceiling) to be deducted of the income. A periodical donation is a gift for which a equal distribution is made for at least five consecutive years, recorded in a periodical deed. The gift is fully deductible threshold without deduction or deduction ceiling.
Deduct broadened for company gifts
For companies, the threshold of € 227 for donations deduction for corporate donations not be canceled and the ceiling raised from 10% to 50% of taxable income up to a maximum of € 100,000.
There is a multiplier of 50% of the amount of donations to a maximum of € 2,500. The actual tax benefit for a company depends on the tax position of the company.