Does your institution promote the general interest? If so, your institution may qualify as a PBO (in Dutch: ANBI). This may lead to significant tax advantages. But, of course, the right conditions have to be met: for example, the activities and policy plan of a PBO must be committed to “the public benefit”. In practice, a lot of questions come up regarding to this. We are happy to assist you with all your questions regarding to the PBO status and other tax issues.
If your organisation qualifies as a PBO, several tax facilities apply. For example, persons who donate to a PBO have the option to deduct their donations (whether or not periodically) from their Dutch personal income tax. The Dutch corporate income tax also offers the possibility to deduct donations. In addition, PBO’s do not pay gift and inheritance tax: without the PBO-status, these proceeds may be taxed against a tax rate of max. 40%. Proceeds “for the general benefit” which are received from a PBO by an entity or individual are also exempt from gift tax.
PBO’s come in all kinds. We are happy to provide you with tailormade advice. We are also able to perform a PBO scan on your institution to assess whether or not your institution meets the PBO requirements. This is of relevance, especially now the PBO-status of a number of specific institutions performing philosophy of life, culture and welfare is being withdrawn – often unjustly. PBO’s receiving remunerations for their activities are also regularly a trending topic. Moreover, the Dutch Tax Authorities checks PBO’s more often than before.
In practice, discussions regularly arise about the extent to which a PBO may carry out activities against a remuneration. Such activities are often referred to as (semi-)commercial or business activities. The Dutch Tax Authorities maintained a very strict position regarding to this issue: the inspector was of opinion that institutions which charged customary rates for non-fundraising activities had to hand in their PBO-status. This position impeded a lot of PBO’s in their activities. We therefore successfully challenged this opinion and the Supreme Court confirmed that the position of the Dutch Tax Authorities is incorrect. This ruling is still very important for a lot of PBO’s. Of course, carrying out commercial and business activities still requires a fiscal check: do these activities not interfere with the PBO-status or lead to any taxation?
We have extensive experience with the foregoing issues and focuses on the following services, among others:
PBO’s may also have to deal with other taxes. These include corporate income tax, wage tax and VAT. We are therefore happy to assist you with:
HVK Stevens Legal offers your PBO notarial and legal services. Because HVK Stevens Tax and Legal work closely together, advice can be implemented immediately. This includes incorporating a foundation and any other legal entities, or amending the bylaws of your PBO. We also actively assist you with the design and implementation of your legal structure. Additionally, HVK Stevens Legal can advice you on governance, management powers and other legal aspects. We can, of course, also be of service to other foundations (non-PBO’s).
HVK Stevens professionals have legal, tax and financial knowledge and experience
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