In response to a parliamentary question from DP MP André Bauler, Minister of Finance Gilles Roth revealed that over the past four years, companies and private individuals in Luxembourg have donated €417 million to NGOs, recorded as tax-deductible, charitable contributions.
The parliamentary question was asked in the context of Luxembourgish taxpayers being allowed to deduct donations and gifts made to recognised charitable associations and foundations from their net income, after social security contributions.
While private donations have remained relatively stable, averaging around €50 million per year, contributions from companies have shown greater fluctuations, according to the tax administration. However, the administration cannot provide an exact break-down of who benefited from these donations or whether the funds were used for charitable, sporting, cultural, or humanitarian purposes.
Currently, there are around 9,230 associations registered as NGOs. In 2019, the number was at 11,500, but 2,850 clubs were removed from the register, leading to a significant decrease the following year. Since then, around 780 new NGOs have been added. There are also officially around 190 foundations in the country.
