Tax benefits - an example
As an example, a donation of €1,500 a year over a period of at least five years means the orchestra will receive the full amount of €1,500 each year. But thanks to the Gift and Inheritance Tax Act (Geefwet) currently in force and under the current 40 per cent net tax scheme, the cost to you is just €808 a year.
Even if you make a one-off gift, you can deduct the gift yourself that year. In such a case, a threshold of 1 per cent and up to a maximum of 10 per cent of your total income does apply.
|Donation per year||€1,500||€5,000||€10,000||€50,000|
|At the 40 per cent* tax rate, the net cost to you each year is||€946||€3,153||€6,307||€31,535|
As a result of the multiplier**
|the net cost to you at the 43 per cent* tax rate is||€808||€2,692||€5,845||€31,073|
* 2023 rates.
** Thanks to the multiplier, your gift can be increased by 25 per cent. The increase may not exceed €1,250. The amounts indicated are for information purposes only. The actual cost of your donation will depend on your personal situation.