Are you planning to start a Dutch Foundation, which will function as an NGO or charity? You can apply for non-profit status in several ways. The easiest option to obtain a non-tax (or NGO) status for a Dutch Foundation is the SBBI status.
Your organization is a social interest-promoting institution (SBBI) if your organization primarily promotes the individual interests of your members or a small target group, but also has social value. This is the case if the activities of your organization contribute to:
- the individual development of your members
- the cohesion of society
- a healthier society
Examples of an SBBI
If they also have social value, the following organizations are SBBIs:
- dance group
- music group/association
- sports organization
- youth group
- neighborhood association
- hobby club
- children’s holiday
- camp youth holiday week
- petting zoo
- association elderly
- local scouting group
- amateur SBBI charity status for a theatre group
In addition to these organizations, other organizations may also be SBBI.
What is the tax benefit for an SBBI?
If your organization is not an SBBI, the normal rules for gift and inheritance tax apply. Your organization does not have to pay gift or inheritance tax on donations or legacies of € 2,147 or less. If your organization is an SBBI, it can use the SBBI scheme.
Gift and inheritance tax rules
Does your organization receive donations or legacies from different persons or companies in 1 year? Then for every donation or inheritance, your organization does not have to pay gift or inheritance tax up to and including € 2,208.
Does your organization receive more donations from 1 person or 1 company in 1 year? Then we add these donations together. In total, the donations made by this donor within 1 year may exceed € 2,208. In that case, your organization must pay gift tax on the amount above € 2,208.
Scheme for SBBIs
If your organization is an SBBI, it also does not have to pay gift or inheritance tax on donations or inheritances above € 2,208. Your organization must file a gift tax declaration to apply for the exemption.