Taking tax advantage of donations? These are the conditions
May 2024 - Donating money to a recognised charity is tax deductible. Provided you meet a number of conditions.
If you make a donation of at least 40 euros (to one association or institution), you are eligible for a tax reduction. Of course, higher amounts or donations to multiple charities are possible.
The tax deduction is 45 per cent of the amount of the donation(s). With a minimum donation of 40 euros, you therefore 'earn' 18 euros back via your next tax return.
A maximum of 10 per cent of your net taxable income can give you a tax advantage. If the amount of the donation on your tax certificate exceeds the 10 per cent limit, the tax authorities automatically apply a restriction.
The donation must come from the person who applies for the tax benefit for it. For example, it cannot be the proceeds of a collective fundraiser. You cannot get a tax certificate for actions such as a food festival or tombola, or for donations in kind.
Only donations to 'recognised institutions' - such as the Red Cross, Fight Against Cancer, Child Focus or a university hospital, for example - are eligible for the tax benefit. You will find a list of recognised institutions on the FPS Finance website under the heading 'Tax benefits/gifts'.
Donations to a foreign charity are also eligible for tax relief, provided the organisation is 'equivalent' to a charity recognised in Belgium. But donations to institutions for (scientific) research that are directly linked to a political party do not qualify.
Attestation needed
teTo correctly enter the amount of your donation(s) on your annual tax return, you should obtain a tax certificate from the charity of your choice. After all, this certificate serves as proof of the donation for the tax authorities. In the event of an inspection by the tax authorities, you must be able to present the certificate. You do not have to enclose it with your tax return.
National register or company number necessary
Since 1 January 2024, institutions that receive donations must state not only the name and address of the donor on the tax certificate, but also the state registration number. For legal entities and companies, the company number must be mentioned. This obligation will apply for the first time to attestations for tax returns in 2025.
