This tax, designed to compensate for inheritance taxes that legal entities cannot claim, has recently undergone significant changes, impacting organisations across the board.
Historically set at a flat rate of 0.17%, this tax is applicable from January 1st, following the date of incorporation of the NPO.
Beginning in 2024, there have been noteworthy adjustments to the patrimonial tax structure. Previously capped at 25,000 EUR, the exemption threshold has now been doubled to 50,000 EUR. Moreover, the tax rate has transitioned from a fixed percentage to a progressive model, aligning more closely with the organisation’s total assets.
The new progressive tax structure is designed to ensure a fair distribution of the tax burden based on the financial strength of each NPO. Here’s a breakdown of how it works:
No Tax Up to 50,000 EUR: If your NPO has assets below 50,000 euros, no patrimonial tax is levied.
0,15% Tax on 50,000 – 250,000 Euros: For assets falling within the range of 50,000 to 250,000 EUR, a 0,15% tax is applied to that threshold.
0,30% Tax on 250,000 – 500,000 Euros: Organisations with assets between 250,000 and 500,000 EUR are subject to a 0,30% tax on the threshold.
0,45% Tax on Assets Exceeding 500,000 Euros: The highest tax rate of 0,45% is reserved for assets surpassing the 500,000 EUR threshold.
Let’s illustrate this progressive tax structure with an example. Consider an NPO with 750,000 euros in assets:
- No tax on the first 50,000 euros.
- 0,15% tax on the next 200,000 euros (50,000 to 250,000 euros) equals 300 euros.
- 0,30% tax on the subsequent 250,000 euros (250,000 to 500,000 euros) equals 750 euros.
- 0,45% tax on the remaining 250,000 euros (above 500,000 euros) equals 1,125 euros.
Hence, the total patrimonial tax for this NPO with 750,000 euros in assets would be 2,175 euros (300 euros + 750 euros + 1,125 euros).
Non-profit organisations must mark their calendars, as the deadline to submit the patrimonial tax return is March 31st each year.
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