Deduction of donations from corporate income tax discontinued in 2025

What changes?

Do you own a company and do you support charities? The deduction of donations in your corporate income tax return will change after 1 January 2025. You may no longer deduct your donations to associations with an ANBI status (Algemeen Nut Beogende Instellingen) and supporting foundations SBBI (steunstichtingen Sociaal Belang Behartigende Instellingen).

Currently, you can deduct up to 50% from your profit, with a limit up to € 100.000.

Does your company make a donation on request of a shareholder with a substantial interest (usually over 5%)? Then that donation will be seen as dividend issued to the shareholder. The shareholder must pay income tax (box 2) and dividend tax for receiving the dividend.

For whom?

• companies that deduct donations in corporate income tax

When?

The change in law is expected to enter into effect on 1 January 2025.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the Lower and Upper Houses (Tweede en Eerste Kamer) of parliament. After publication in the Staatsblad or Staatscourant (Government Gazette, in Dutch) the law can take effect.

Do you think government rules are unclear?

Do the rules create unnecessary administrative burdens? Or do you know how the rules could make doing business easier? You can report this (anonymously) to the Regulatory Reporting Centre (Meldpunt regelgeving).