The following examples illustrate our national/international expertise in the non-profit sector:
- Income tax status in Belgium of a U.S. NPO with economic activities
L&TM defended the European headquarters (located in Brussels) of a US non-profit organization under §501(c)(3) against a challenge of their (income) tax exempt status in Belgium: the tax dispute was favorably solved by an agreement with the tax authorities, according to which all the tax assessments were cancelled.
- Educational organizations: (VAT and income tax aspects)
L&TM assisted and advised a non-profit training organization operating throughout Europe: managing VAT aspects in educational services in the concerned countries, reducing income tax exposure (e.g. successful settlement of permanent establishment issue in Russia).
L&TM provided advice on legal structure for a college for higher vocational training in Kosovo: legal and tax implications in case the legal entity which operates the college is set up and has its main office in Belgium (to be compared with the location of the entity in other countries).
L&TM advised a training organization, giving sessions in Belgium and abroad to doctors and physiotherapists, and modified its legal structure in order to keep its VAT exempt status in Belgium, under the new VAT circular, and to reduce the administrative formalities in the foreign countries.
- Contribution of assets to a new foundation
L&TM advised a recently created private foundation in Belgium on the tax aspects (gift tax) of a contribution for free of assets (gift in kind).
- Social business centers
L&TM advised a subsidized business center specialized in young entrepreneurs in Brussels. Investigation for the possibilities for using the legal form of "ASBL" (non-profit association) or "Société à finalité sociale" (company with social purpose) as vehicle for such a business center: legal and tax aspects.
- Cross border transfer of liquidation proceeds to a French charity
L&TM advised and assisted a Belgian religious charitable association set up as an ASBL in the different steps of the dissolution process, including all legal and tax aspects of the tax free transfer of its net assets to the parent organization, located in France.
- Cross-border legacies to UK charities
L&TM assisted three UK charities, benefiting from a cross border legacy from Belgian source, in their litigation against the Belgian tax authorities, who denied to apply the reduced inheritance tax rate. The administration finally accepted to grant equal treatment in conformity with the Treaty of Rome.
L&TM obtained from the Belgian tax authorities a decision according to which the UK charitable trust in question could reasonably be compared to a Belgian legal entity and more particularly to a "Fondation d'utilité publique". As a consequence, the charitable trust was entitled to benefit from the specific reduced (inheritance) tax rate of 6,6% instead of the "general reduced rate" of 25%.
- Assistance in creating a database on cross-border philanthropy
L&TM assisted a major foundation for the creation and the updating of an interactive online database on cross-border giving, providing legal and tax information to potential donors, beneficiaries and intermediaries and covering most of the E.U. countries.