Tax deduction from a donation to Polish Churches in the Netherlands.
Unlike in Poland, churches in the Kingdom of the Netherlands do not receive state subsidies for their statutory activities. The money for their maintenance must then come from another source. In practice, this means that they must count on the generosity of their faithful members.
How is it done? The Catholic Church, and therefore its parishes, have the status of a general public utility institution (ANBI - Algemeen Nut Beogende lnstelling) and have a collective RSIN number (Rechtspersonen Samenverkingsverbanden lnformatie Nummer). This means that the Christian community is recognized as an organization whose activities almost entirely serve the public good. And what is important for us, the Catholic Church has this status, so donations to Polish parishes can also be tax deductible. However, you must remember to meet the relevant conditions.
Donations to Polish parishes that are tax deductible include periodic donations and ordinary donations. We will discuss them briefly below.
Ordinary donation ("gewone gift"):
This is a one-time donation that you can make, e.g. once a year. without the obligation to write a written contract
This donation:
- Made for an institution with ANBI status,
- It is voluntary and does not involve the donor receiving any goods or services in return,
- You can prove it, for example by certifying an extract from your account,
- Can be tax deductible from 1-10% of income, with 1% of income being a threshold with a minimum of €60. You can deduct the difference between the donation amount and the threshold value. If you have a fiscal partner, your total income counts to calculate the threshold and the maximum amount of the deduction.
Periodic donation ("periodieke gift"):
Your donation is considered periodic if it meets the following 3 conditions:
- You donate the same amount to the same institution every year,
- You transfer this amount for at least 5 consecutive years,
- You have specified when your donations will end, eg in 5 years, and in the event of your death, the donation must be stopped immediately.
In order for the donation to be tax deductible, it must additionally:
- Be transferred to an organization with ANBI status,
- Be documented by a notarized contract or a contract concluded directly with a given organization,
- do not involve additional benefits (e.g. material benefits)
- Be paid in a way other than cash, in order to confirm the payment (e.g. by bank transfer)
Note :
Previously, when deducting a periodic donation, we did not have a threshold for the amount paid to the Church, but from January 1, 2023, a new law is in force - with a maximum of 250,000 € per year.
Summary
Like many other institutions, the Catholic Church in the Netherlands, and with it Polish parishes, count on their members - in this case the faithful - who will support them financially, thus enabling their normal functioning. If you decide to do so and pay attention to doing it according to specific rules, you will be able to write off your donation when settling your income tax.
Do you have doubts about how to do it correctly? Ask for help from experienced experts in our accounting office! We are at your service at the telephone number or e-mail address provided on the website. Please contact us ASAP!