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.
There are ceilings on claiming the enhanced tax incentive:
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.
There are conditions for taxpayers to benefit from this enhanced tax incentive:
Certain in-kind donations may also qualify for the enhanced tax incentive. These in-kind donations can be of two types:
Read an October 2020 report (French) prepared by the KPMG member firm in Belgium
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