Tax advantages

Business donations to Free a Girl can be tax-deductible if they meet certain conditions.

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BUSINESS AND NON-BUSINESS DONATIONS

A donation can be fully deductible if it is a commercial expense; if the donation, in whatever form, makes a positive, useful contribution to your business operations. This could include advertising, sponsorships or donations in time. The donation is also deductible when a tax loss is incurred in the year concerned (the loss is then increased).

A donation out of charity is a donation for non-commercial reasons, or a donation that is so large that it cannot reasonably be claimed that it was made exclusively for promotional reasons.

LEGAL FORM OF THE COMPANY

Businesses that pay corporation tax (limited or public limited companies) can make use of the advantages associated with business donations. Donations to public benefit organizations (ANBIs) can be deducted from the profit. Each year, the deduction may amount to no more than 50% of the profit, up to a maximum of €100,000. Find out more here at the website of the Dutch tax authorities (Belastingdienst).

One-person businesses or general partnerships can make use of the same tax advantages as private individuals when making a donation. The size of the deduction for a non-business donation is dependent on the total income; it is also determined by the income of your partner for tax purposes. When a donation is made for five years or more, it qualifies for the full deduction. More information is available from the Dutch tax authorities(Belastingdienst).