In context

End of financial year: foundations should check their records of payments

December 17, 2020
In context

From 8 July 2020, foundations in the Netherlands must keep a “payments register” for any payments they make during a financial year which are less or equal to 25% of their distributable funds. By introducing this requirement, the Dutch government is following the recommendations of the OESO Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum).


The payments register must set out the names and addresses of the beneficiaries in question, and specify amounts and payment dates. This record-keeping duty only relates to cash payments. It does not include payments in kind, such as food and medication.


An individual who is directly or indirectly entitled to more than 25% of the foundation’s distributable funds must be entered into the UBO Register as ultimate beneficial owner. Foundations must obtain and maintain information regarding their UBOs, as well as submit these to the central UBO Register at the Chamber of Commerce.

Depositary receipt holders

Where an ”administration office” foundation (stichting administratiekantoor) under Dutch law only conducts administration and management operations for the benefit of holders of depositary receipts of shares, these holders will generally not be regarded as UBOs of the foundation.


New bill on transparency

In a related development, a bill on transparency of civil society organisations was submitted to the lower house of parliament on 20 November 2020. It is proposed that substantial gifts to foundations and associations be made transparent to the government. Foundations and associations are required to register substantial donations in an internal register. Under this bill, foundations also have to file their balance sheet and a statement of income and expenses with the Trade Register.

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