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Annual tax on NPOs

  • Annual tax return form for non-profit organisations (NPOs): Dutch | French | German

The annual tax on NPOs, also referred to as wealth tax, is a tax collected in lieu of inheritance tax from legal persons, which are not subject to inheritance tax. In addition to NPOs, the tax also applies to private foundations and international NPOs.

The basis of taxation is the entirety of the assets owned by the NPO. Both tangible assets (e.g. buildings) and intangible assets (e.g. copyrights) are taken into account.

Some assets, such as immovable assets located abroad, fall outside the scope of that definition.

No costs or debts may be deducted from the entirety of the taxable assets, save for a few exceptions.

  • Are all NPOs subject to tax?

    As a rule, all NPOs with a registered office in Belgium are subject to annual tax. In some cases, NPOs are tax-exempt, or need only file a return every three years.

    In bepaalde gevallen is uw vzw echter vrijgesteld van de taks of is een driejaarlijkse aangifte voldoende.

    1. Asset value of EUR 25 000 or less: no tax is due

    If the value of the assets owned by the NPO is EUR 25 000 or less, it is not subject to tax. No tax is payable.

    Please note: if the value of the assets does not exceed EUR 25 000, this must still be reported.

    • If you have received a request to file a return, you may fill in the box at the bottom of the letter and return it to the Legal Security Office (Kantoor Rechtszekerheid | Bureau Sécurité juridique | Amt Rechtssicherheit).
    • If you have not received a request to file a return, please contact the competent Legal Security Office directly.

    2. Asset value exceeding EUR 25 000: yearly or three-yearly tax return required

    • If the assets of the NPO are worth more than EUR 25 000, but the tax due is less than EUR 500, you may submit one return for the next three years.
      NB: if the NPO’s asset value changes during the course of those three years, resulting in a tax increase of at least EUR 25 (i.e. the tax due increases to EUR 525), you must notify the Legal Security Office (Kantoor Rechtszekerheid | Bureau Sécurité juridique | Amt Rechtssicherheit).
    • If the assets of the NPO are worth more than EUR 25 000, and if the tax due is more than EUR 500, you must submit an annual return.

    3. Specific exemptions

    Some NPOs are tax-exempt. Tax-exempt NPOs include self-administered pension funds. The exempt institutions are listed in the legislation.

  • What is the deadline for filing a return?

    Returns must be filed by 31 March at the latest.

    As a rule, in February, all NPOs receive a request from the Legal Security Office (Kantoor Rechtszekerheid | Bureau Sécurité juridique | Amt Rechtssicherheit) to file a return.

    If your NPO does not receive a letter, it is advisable to contact the competent Office directly.

    Please note:

    • If your NPO is exempt from tax on account of a low asset value (EUR 25 000 or less), you are still required to declare that the value of its assets is less than EUR 25 000.
    • If your NPO is eligible to file a three-year return, but the change in its asset value during the course of those three years has resulted in a tax increase of at least EUR 25, you must also notify the Legal Security Office (Kantoor Rechtszekerheid | Bureau Sécurité juridique | Amt Rechtssicherheit).

  • Where should the return be filed?

    You must file your return with the competent Legal Security Office (Kantoor Rechtszekerheid | Bureau Sécurité juridique | Amt Rechtssicherheit), i.e. the Office covering the area in which your NPO’s registered office is located.

    How do I find the competent Office?

    Refer to our guidance on Offices:

    • In the ‘Registration’ section, click on ‘Inheritance’
    • Choose ‘Recovery of tax in lieu of inheritance tax (NPO returns)’
    • Enter the first letter of the municipality in which your NPO’s registered office is located
    • Select the correct municipality from the list
    • Click on ‘SEARCH’

  • What is the annual tax rate?

    This tax is charged at a rate of 0.17 % on the amount declared.

    Example:

    • assets declared: EUR 74 368
    • amount of tax: EUR 126.43

  • What is the deadline for payment?

    Any tax due must be paid at the latest by 31 March of the relevant tax year.

  • Do you have any questions on your NPO’s tax?

    Contact us.