Tax increase for Non-Profit Organizations (VZW) and Private Foundations.
- Aeacus Lawyers
- Feb 20, 2024
- 1 min read
On 21 November 2023, the draft law amending the so-called ‘patrimony tax’ was approved in parliament. The rate of the patrimony tax will be significantly increased and its scope expanded.
The draft law introduces a progressive rate, as opposed to the current fixed rate of 0.17%. Furthermore, the exemption is raised from EUR 25,000.00 to EUR 50,000.00.
According to the proposed rate system, the new structure would be as follows:
- Up to EUR 50,000.00: exempt
- As from EUR 50,000.01 to EUR 250,000.00: 0.15%
- As from EUR 250,000.01 to EUR 500,000.00: 0.30%
- Above 500,000.00: 0.45%
Previously, legal entities that owed less than EUR 500.00 in tax could take advantage of the option to pay the tax for three years in advance. However, this administrative advantage is eliminated under the new regulations.
The draft law also includes a specific provision to neutralize the impact of the new rate for healthcare institutions. Assets of entities primarily active in the healthcare sector will be included in the taxable base at only 37.7% of their value, reducing the rate to 0.17%. This de facto leaves the tax burden for health institutions unchanged.
While the draft law provides some exceptions, such as for the sports and culture sector, it is advisable for organizations in these categories to closely monitor developments and seek legal advice to adequately prepare for the upcoming changes in the patrimony tax.
Christophe Romero
Senne Verholle
