What tax benefit do I gain when I give to charity?

You are an entrepreneur, and you donate money to charity. Because you want to do something good for society. That can mean you gain tax benefits. Read how it works here.

Check ANBI status 

You only get tax benefits if you give money to a charity that is an ANBI or an SBBI. ANBI stands for Algemeen Nut Beogende Instelling, public benefit organisation. Check the ANBI status with the Netherlands Tax Administration (in Dutch). An SBBI is a social advocacy institution (in Dutch), Sociaal Belang Behartigende Instellingen, and is usually an association.
Income tax
Do you have a sole proprietorship or are you a partner in a vof, cv, or partnership? Then you are an entrepreneur for income tax purposes. Donations to an ANBI are deductible in your income tax return. The threshold before you can deduct donations is 1% of your total income. With a minimum of €60. Anything above that may be deducted, up to a maximum of 10% of your total income. Cash donations are not deductible.
Do you give to a cultural ANBI? Then you may increase the deduction by 25%, with a maximum of €1,250. When checking the ANBI status with the Tax Administration, you can see whether the charity is a cultural ANBI.
Example: Your income is €30,000 a year. The 1% threshold is €300. You give €500 to a cultural ANBI. To this, you add 25%. That is €125, making a total of €625. From this, you deduct the threshold amount of €300. This means you can deduct €325 from your taxable income. 

Periodic donation

If you give the same amount to the charity for at least 5 calendar years, you can opt for a periodic donation. To do so, enter into an agreement with the charity. Use the sample agreement for periodic donations (in Dutch) from the Tax Administration. Or have your notary confirm your periodic donation to charity. You may then deduct the donation each year without a threshold. The maximum deductible amount is €250,000 per year, for you and any possible fiscal partner combined.

With an SBBI (association), only a periodic donation is deductible. A one-off donation to an SBBI is therefore not deductible. However, the SBBI must meet these conditions:

• The association has a minimum of 25 members.
• The association has full legal capacity.
• The association is exempt from or not subject to corporate income tax.
• The association is established in the European Union, Sint Maarten, Curaçao, Aruba, Bonaire, Sint Eustatius, Saba, or in another country designated by the Tax Administration.

Corporate tax

A bv may deduct donations to an ANBI in its corporate income tax return. Per year, you may deduct 50% of your profit. The maximum amount is €100,000. You must prove the donation with a bank statement. A cash donation is not deductible.
Do you donate to a cultural ANBI? Then you may increase the deduction by 50%. The deduction may be increased by a maximum of €2,500.
The deduction for gifts of up to €100,000 remains in place for private limited companies in 2024. The Dutch parliament rejected changes to the deduction proposed on Budget Day. The tax plans for 2024 will be final after publication in the Government Gazette (Staatscourant).