Donate

There are several reasons to donate. To help someone or a charity. Simply because it is fun. But also because you find it unfortunate if heirs have to pay a lot of inheritance tax, or you want to avoid a high own contribution for a care institution.

If you want to optimise your donation for tax purposes, you can choose to donate exactly the amount of the gift tax exemption each year. If your assets or income are somewhat larger, it may be that your assets still grow annually despite the gifts. In that case, it is worth considering donating the amount of the first gift tax bracket as well and then only paying some gift tax. This can save over 10% or 30% on the donated amount on balance.

There are several ways to donate. You can donate by transferring an amount to the donee or giving a thing. But you can also work with so-called paper donations. This is a way of gifting where debts are created to the donee. With the latter form, the requirements that do apply are that the gift must be recorded in a notarial deed and that 6% annual interest must actually be paid. This form of donation is useful if you do not yet want to actually lose the money from your wallet, or the money is tied up in a property.

For other gifts, the law does not in principle impose any requirements. Many people find it desirable to prevent prospective ex-partners of the donee from laying claim to what has been donated. Sometimes it is pleasant if the donee cannot yet dispose of the donated property at the age of 18 or older.

When corporate assets are donated, 83% is exempted from gift tax under certain conditions. Because the exemption is so large, we also advise on converting assets into company assets so that this exemption can be used.

A donation to a non-profit organisation is exempt from gift tax. In a number of situations, such a donation is also income tax deductible.

For more information on donating, donation provisions and saving tax, please contact us. We will be happy to advise you.