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Antoine Druetz
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Support for paper publications: Exploring the tax credit for non-profit organisation
Belgium introduces a tax credit for paper publication publishers, aiding non-profit organisations in offsetting distribution costs after tariff changes.
- A temporary tax credit has been introduced by the Belgian government to support publishers of paper publications, particularly benefiting non-profit organisations (NPOs) that distribute newsletters in print.
- The aim is to alleviate the financial burden faced by publishers who no longer benefit from reduced delivery tariffs.
Key takeaways
In an effort to support the publishing industry amidst the recent changes to postal concessions, the Belgian government has introduced a temporary tax credit for publishers of paper publications. This initiative, effective from January 1st, 2024, aims to alleviate the financial burden faced by publishers who no longer benefit from reduced delivery tariffs. For non-profit organizations (hereafter: “NPO”) that distribute newsletters in print, understanding the implications of this tax credit is crucial. This article will explore the background, eligibility criteria, targeted expenses, and the process for claiming the tax credit, providing NPOs with the necessary insights to navigate this new opportunity effectively.
I. Tax Credit for Publishers of Paper Publications
A. Background and Rationale
As part of the postal concession (Bpost) as it existed until June 30, 2024, newspapers and periodicals included in a subscription package were delivered at home at a reduced rate for the publisher. With the end of the postal concession for the distribution of paper publications, the Belgian government has decided to support at the federal level the cost disadvantage faced by publishers of paper publications who no longer benefit from the reduced tariff. In this context, a tax credit for publishers of paper publications was temporarily introduced by the Law of May 12, 2024, on various tax provisions.
The introduction of the tax credit for publishers of paper publications presents a valuable opportunity for NPOs that continue to engage their audiences through printed newsletters.
B. Eligibility for the Tax Credit
The taxpayers concerned are:
- Publishers of paper publications who are subject to personal income tax, legal entities income tax or non-resident tax (NRT/individuals and NRT/legal entities); and
- Publishers of newspapers and/or periodicals who are subject to corporate income tax (CIT) or non-resident tax (NRT/companies).
NPOs sending a paper version of their newsletter are affected by the above-mentioned first indent.
C. Targeted Expenses and Calculation
The targeted expenses are the distribution costs incurred in the calendar years 2024 to 2026 included. 'Distribution costs' means the amounts, including VAT, that publishers have to pay for the delivery of paper publications.
D. Claiming the Tax Credit
The tax credit entered into force on January 1st, 2024, and applies to distribution costs incurred or borne from July 1st, 2024 to December 31, 2026 included.
II. Conclusion
The introduction of the tax credit for publishers of paper publications presents a valuable opportunity for NPOs that continue to engage their audiences through printed newsletters. By understanding the eligibility requirements and the process for claiming this credit, NPOs can mitigate distribution costs and enhance their financial sustainability. As the landscape of publishing evolves, staying informed about such initiatives is essential for NPOs to thrive in their mission-driven efforts. We encourage NPOs to assess their eligibility and take advantage of this tax relief to support their ongoing communication and outreach activities.
This article was written in collaboration with Nathalie Campenaire from EY Tax Consultants team.
If you have any questions or concerns related to direct tax or non-profit law, Antoine DRUETZ, Partner will gladly assist your organisation.
Action Points
- NPOs should evaluate their current distribution costs for printed newsletters to determine potential savings through the newly introduced tax credit.
- Create a timeline for tracking eligible expenses and ensure that all necessary documentation is prepared for claiming the tax credit by the specified deadlines.