close
Share with your friends

Belgium: Enhanced tax incentive for charitable donations (COVID-19)

Belgium: Enhanced tax incentive for charitable donation

In an effort to motivate and encourage charitable donations in the face of the coronavirus (COVID-19) pandemic, the rate of tax deductibility of donations for individual (personal) income tax purposes is increased to 60% of the amount of the donation for the 2020 income year.

1000

Related content

There are ceilings on claiming the enhanced tax incentive:

  • A maximum of 20% of all net income (excluding separately taxed income)
  • A maximum of €397,850

The total amount of the donation is to be reported on taxpayer’s Belgian income tax return. The tax authorities will automatically apply the 60% incentive. The enhanced tax benefit cannot be converted into a refundable tax credit.
 

Other conditions

There are conditions for taxpayers to benefit from this enhanced tax incentive:

  • The donation must be at least €40 per year and per organization.
  • The donation must be made to an approved organization.
  • The organization must provide a tax certificate for the donation received.
  • The donation must be personal (cannot be the result of a "collection").
  • It must in principle be made in cash.
  • The donation is made without consideration.

Certain in-kind donations may also qualify for the enhanced tax incentive. These in-kind donations can be of two types:

  • Donations of medical devices useful in addressing the COVID-19 pandemic (such as masks, disinfectants, respiratory assistance devices, etc.) made to certain institutions (university hospitals, public social action centers, etc.), between 1 March 2020 and 30 June 2020.
  • Donations of computers (desktop or laptop), made between 1 March 2020 and 31 December 2020, to schools established in Belgium (providing school or university education). These computers must be useful for distance education and be recognized as such by the beneficiary schools. Tablets are also affected by this measure.


Read an October 2020 report (French) prepared by the KPMG member firm in Belgium

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal