Tax breaks for cultural donations to be limited
MPs want to limit cabinet plans to make it more financially attractive to sponsor the arts and culture in the Netherlands. At the same time, a majority of MPs want sports and music clubs to benefit from the same tax breaks. The conservative VVD, Christian Democrats CDA and Freedom Party PVV have submitted amendments to a bill governing such donations.
Deputy Finance Minister Frans Weekers proposed the bill to soften the blow of far-reaching government cuts to subsidies for the cultural and arts sector. He had wanted to make donations 150 percent deductible from income tax. On that basis, if someone paying the highest rate of income tax were to donate 1,000 euros, they would receive a rebate of some 780 euros.
The Freedom Party, however, thought the plans would cost the treasury too much. As a result, the proposed 150 percent tax deduction has been lowered to 125 percent for a maximum donation of 1,250 euros.
The Christian Democrats in parliament thought it was unfair that local orchestras would not be able to benefit from the same measure as symphony orchestras. Now, sports and music clubs will also be able to use the same construction for donations destined for things such as a new clubhouse or music instruments. The three parties that have made the amendment hold a majority in parliament so the sobered-down plans are assured of approval.
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