An institution can be qualified as a Public Benefit Organisation (PBO) solely when at least 90% of the institutions efforts are focused on the general good. As a result, sports associations, staff associations and commercial organisations do not generally qualify as PBOs.
What are the tax advantages of a PBO?
Public Benefit Organisations (PBOs) are offered a number of tax advantages:
- A PBO does not pay Dutch inheritance tax or gift tax on inheritances or gifts that the institution allocates to the general good.
- A PBO does not pay Dutch gift tax on gifts that the institution makes for the general good.
- Natural and legal persons making donations to a PBO may deduct their gifts from their Dutch income tax or corporate income tax.
PBO status Foundation Tikkun Olam
Foundation Tikkun Olam does not have a PBO status at this time. The request for obtaining the PBO-states has been filed on 31st December 2019.