A regular financial donation allows Dutch residents to make full use of the tax advantages. By agreement, you would pledge to donate a sum periodically for at least five years. This could be a donation every month, quarter, or year. The sum of the donations within each year can be deducted from taxes. (The obligation ends upon the death of the donor).
Please find the tax rates for 2021 below (box 1 taxable income from work and home). These tax rates are valid if you have not yet reached the AOW retirement age. Should you already have reached the retirement age, please refer to the website of the tax authorities for the information that applies to you.
Tax rates for 2021:
|1||Up to €68.508,-||37,37%|
‘Scale 1’: Suppose your taxable income is €40.000 a year and you wish to donate €1.000 a year for a period of at least five years. The tax rate applicable to your income is 37,37%. Your taxable income (€40.000) minus your donation (€1.000) requires you to pay tax at 37,37% over an income of €39.000. Your tax bill of €14.940 on taxable income of €40.000 instead becomes a tax bill of €14.566 on income of €39.000. In short, you donate €1.000 a year to the Nyenrode Fund for five years and pay a net amount of €626 each year.
‘Scale 2’: Suppose your taxable income is €100.000 a year and you wish to donate €1.000 a year for a period of at least five years. The tax rate applicable to the first €68.508 of your income is 37,37%. For the remaining amount (€31.492) the tax rate applied will be 49,50%. You will be required to pay tax at 49,50% over €30.492. In short, you donate €1.000 a year to the Nyenrode Fund for five years and pay a net amount of €505 each year.
Interested in becoming a donor? Please simply download and fill in the contract, sign it and return it to us.