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.

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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

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