deduction of donations from income tax

A donation made by you to Mlambe Foundation is, under certain circumstances, deductable from your income tax. There are two kinds of donations, a periodic donation and an ordinary donation.

Periodic donation

A periodic donation is a donation laid down in a notarial deed in which you agree to annually donate a certain amount to Mlambe Foundation during a period of at least five consecutive years. The annually donated amount is fully eligible for deduction. In consultation Mlambe Foundation can arrange for the notarial execution.

Ordinary donation

Ordinary donations are all donations that are not periodic. The deductability of ordinary donations is limited. These donations are only deductable in as far as they exceed 1% of your collective income (the threshold). The collective income is your total income out of box I, II and III without taking deductables into account. The deduction regulation has, apart from a threshold, also a ceiling. This means that the deductability is limited to a maximum amount equal to 10% of the abovementioned collective income. 

Example

Your collective income is € 30,000. You donate € 500 to Mlambe Foundation.

The threshold, 1% of € 30,000, is € 300. The ceiling is € 3,000. This means € 200 of your donation is eligible for deduction from your income tax.  

If you donate € 500 in the form of a periodic donation - you annually donate € 100– then the full € 100 is annually eligible for income tax deduction. 

Donations and tax

 As Mlambe Foundation has been recognised as a charitable organisation by the tax authorities, neither you nor Mlambe Foundation is subject to donation tax in respect of the donation made by you.