Final call for non-profit organisations to file their wealth tax declarations by March 31, 2025!
The deadline for Belgian private foundations and (international) non-profit associations to file and pay the wealth tax on their assets of March 31, 2025 is fast approaching.
- The payment of the wealth tax is an annual obligation for most non-profit organisations, applicable to all assets, both movable and immovable.
- Account will be taken of the total assets on January 1, 2025. The first €50,000 of eligible taxable assets is exempt, with progressive rates being applicable to higher asset brackets.
- Late declarations or payments may result in penalties and interest charges.
Key takeaways
Time is running out for non-profit organisations (hereafter: “NPOs”) in Belgium to file their annual wealth tax (in Dutch: “Patrimoniumtaks” / in French: Taxe Patrimoniale”) return. The deadline being March 31, 2025, it is crucial to act now. This annual tax applies to all assets held by most NPOs and understanding the requirements is essential to avoid penalties.
What does the wealth tax entail?
The ‘tax to reimburse inheritance tax’, more commonly known as the “wealth tax” is a yearly tax levied on the total assets of NPOs, encompassing both movable assets (e.g. furniture and equipment) and immovable assets (e.g. buildings and land). The tax is calculated based on the market value of these assets as of January 1st of the assessment year, and it is important to report them accurately to ensure compliance.
Tax rates
The wealth tax operates on a progressive scale, with the following rates applicable:
| Progressive brackets (eligible taxable assets) | Applicable tax rate |
| ≤ 50,000 EUR | Exempted |
| 50,000.01 EUR – 250,000 EUR | 0.15 % |
| 250,000.01 EUR – 500,000 EUR | 0.30 % |
| > 500,000 EUR | 0.45 % |
Exemptions and reductions
Certain NPOs and specific sectors, such as pension funds, sports, culture, and education, benefit from an exemption or a reduced tax base. It is therefore essential to check if your NPO qualifies for any exemptions or tax reductions.
Declaration and payment requirements
Belgian private foundations and (international) non-profit associations must submit a declaration using form 187 via MyMinfin or by post and pay the taxes due each year between January 1 and March 31 at noon at the latest, if their taxable assets exceed €50,000.
Consequences of non-compliance
If your wealth tax declaration has not yet been filed, then the time to act is now. Late payments may incur a penalty of €2.50 per month, along with a 7% interest charge on the outstanding amount. Failure to declare, incomplete declarations or late declarations of the wealth tax can also be sanctioned with a fine equal to the tax evaded.
Conclusion: the clock is ticking – act now!
With only two weeks left until the March 31 deadline, NPOs must act swiftly to file and pay the wealth tax due, to remain compliant and avoid unnecessary costs. Understanding the tax structure, potential exemptions, and deadlines is crucial for effective financial management and compliance.
The clock is ticking! NPOs must file their return and pay their wealth tax before March 31, 2025 (noon) to avoid penalties and ensure compliance.
Action Points
- Assess your assets: Review your NPO’s total assets as per January 1, 2025, to determine your tax liability.
- Check for exemptions: Verify whether your NPO qualifies for any exemptions or reduced rates based on your sector.
- Prepare your declaration: Complete form 187 and ensure all asset values are accurately reported.
- Submit on time: Ensure your declaration is submitted via MyMinfin or by post by March 31, 2025 (noon) at the latest.
- Plan for payment: Arrange for timely payment to avoid penalties and interest charges.
- In case of doubt(s): Contact Antoine Druetz from EY Law.
