Gifts made by private individuals to UWC in The Netherlands can provide a tax benefit. The Inland Revenue has designated the UWC Sponsorship Fund and the UWC Netherlands Foundation as ANBIs (Institutes for General Benefit).
Gifts are tax -deductible in two ways:
1. Ordinary gifts
When all the gifts made to ANBIs in any tax year amount to more than 1% of the threshold income, then the excess (above the 1%) may be deducted from the taxable income up to a maximum of 10% of the threshold income. The threshold income is the total of incomes and tax-deductible items in boxes 1, 2 and 3, but without the personal deduction.
2. Periodic gifts
When a previously determined amount is gifted annually to an ANBI for a period of no less than 5 years, the gifts are fully tax-deductible in the fiscal year in question. It is necessary to have a deed executed by a Notary Public for this, in which all the details are set out.
For further information about the tax benefit, please contact us.