The Minister of Finance of the Netherlands signed the Decree on Income Tax: as a result, tax legislation was changed regarding regular donations. This decision amends the Decree of December 19, 2014 No. BLKB2014/1415M.
Two new parts have been added to the Decree:
- Part 2.6, in which states that in the case where regular donations are made for 5 consecutive years, it does not matter at what point the payment expires in calendar years, since such donations cannot lead to illegal tax deductions. Subject to all the rules, the donor is entitled to the established tax deduction.
- Part 2.7, in which refers to the possibility of referring to the decision of the Supreme Court of the Netherlands of October 7, 2022.
The court ruled on regular donations from spouses and found that regular donations under a joint contract of spouses cease after the death of the last of them. In addition, the court ruled that the Income Tax Act 2001 does not require recognition of only donations that depend on a single life. Therefore, marital donation contracts, despite the fact that they are high-risk, should be taxed on a general basis. In accordance with this court decision, for all marital donation contracts entered into prior to October 7, 2022, the tax deduction is provided for the years through 2022 inclusive as "other donations", and for the years after that date - as "regular donations".
The changes to the legislation came into force on April 14, 2023.
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