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A foundation sought clarification on whether direct donations made to individuals or institutions to fulfill its foundational purposes qualify as deductible expenses. The Directorate General for Taxes (DGT) ruled that they are not deductible, as such activity does not constitute an exempt economic activity.
Foundations must distinguish between exempt economic activities and philanthropic activities, as the latter do not grant tax deductibility for the expenses incurred.
The tax team reviews your specific situation.
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