Decision to grant exemption to foundations and associations
Dutch corporation tax regulations provide for a subjective exemption scheme for foundations and associations that carry on a narrowly profitable business operation. The exemption only applies to foundations or associations that have tax liability (i.e. that are carrying on business operations). The exemption applies ipso jure on condition of compliance with the terms governing the scheme, unless the foundation or association in question has filed a timely request for renunciation. Exemption will apply as long as the earnings for a particular year have not exceeded € 15,000 or, alternatively, as long as aggregate earnings for the year in question plus the four previous years have not exceeded € 75,000, the latter with the proviso that the profits for loss-making years having occurred during the five-year period under review will be fixed at nil. Several sample calculations have been included to illustrate how the scheme works.
The State Secretary for Finance has publicised (dutch) a decree containing exemption-related policy guidelines.
Dutch version: Besluit vrijstelling stichtingen en verenigingen