Progressive Tax Reform for Non-Profit Organizations: Exemptions and Impact on Sectors

2023-12-28 18:17:00

This involved passing a “catch-all” tax law concocted by Finance Minister Vincent Van Peteghem (CD&V). The original text, adopted by the entire De Croo government, had been heavily amended in its section organizing the reform of the taxation of non-profit organizations.

The modification of the initial project was obtained, in particular, thanks to the work of Catherine Fonck, MP from the Les Engagés group. On Thursday, several parliamentarians from other parties praised his vigilance in this matter. Without last minute adaptations, the government’s text would have hit hard on free education, certain hospitals, sports associations, animal shelters… An aberration in the eyes of the Committed since these sectors are helped by the public authorities, in particular the Communities . How can we justify tax measures that would contradict other policies implemented elsewhere?

Taxation of non-profit organizations: agreement in Kern to exempt several sectors, “there was unacceptable discrimination”

The monitoring work has therefore paid off: these very broad areas of associative life were exempted in the final version of the tax reform for non-profit organizations. “We still came close to voting on everything 15 days ago,” explains Catherine Fonck. Was the initial plan developed by mistake or was this done intentionally? I don’t know… We had to take the fight to parliament, it wasn’t easy. I don’t understand how we might get to this situation within Vivaldi.”

Catherine Fonck (Les Engagés), federal deputy, carried out opposition work on this issue which was praised by her colleagues in the Chamber. ©BVB

Progressive taxation

Concretely, with the exception of these immunized sectors, the law adopted this Thursday introduces more progressive taxation for small non-profit organizations. The new system replaces the single tax rate of 0.17% which was applied until now with progressive taxation. Thus, non-profit organizations which hold assets of less than 50,000 euros (compared to 25,000 euros today) will no longer pay any tax in the future. Between 50,000 and 250,000 euros of assets, the annual tax will be reduced to 0.15%. Between 250,000 euros and 500,000 euros of assets, the levy will now be increased to 0.30%. And even 0.45% beyond half a million euros of assets.

Regarding the votes in the House this Thursday followingnoon, the text was approved by the parties of the Vivaldi majority. The opposition N-VA and Vlaams Belang voted once morest, as did Défi. The Engagés and the PTB, also in opposition, abstained.

The reform of the taxation of non-profit organizations will cost Catholic schools dearly
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