Increase in tax exemption for donations in Belgium fails to meet expectations

Increase in tax exemption for donations in Belgium fails to meet expectations
The headquarter of Belgium's Ministry of Finance in central Brussels. Credit: Belga

The increase from 45% to 60% in the tax exemption for donations, decided by the former federal government in June 2020, has cost Belgium more than what charity organisations really received, L’Echo reported on Saturday.

This is based on figures from the federal Finance Department.

The increase was aimed at helping NGOs and other non-profit organisations whose activities in the public interest had been hard hit by the crisis. It resulted in an increase in donations, which went from about 290 million euros in 2019 to over 370 million euros in 2020.

However, the measure cost the national budget an additional 90 million euros: its cost went from 130 million euros in 2019 to over 220 million in 2020.

Of this amount, 80 million actually benefitted the NGOs and non-profits while the remaining 10 million euros were pocketed by the “generous” taxpayers, according to the newspaper’s calculations.


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