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Belgium Non-Profit Organizations Face New Compliance Obligations

As non-profit organizations (NPOs) operating in Belgium, it’s essential to be aware of the new compliance obligations introduced by the Companies and Associations Code (CAC). Effective from 2020, NPOs must adhere to specific accounting models, filing requirements, and other regulatory demands.

Size Criteria for NPOs

According to the CAC, NPOs are categorized into four sizes based on their revenue, assets, debts, and average number of full-time equivalent (FTE) workers. The size criterion determines the type of accounting model that applies to each organization:

  • Small Micro NPO:
    • Annual turnover below €334,500
    • Total assets below €1,337,500
    • Total debts below €1,337,500
    • Fewer than 5 FTE employees
    • Simplified accounting using a single book of accounts
  • Micro NPO and Small NPO:
    • Revenues above €334,500 but below €7 million
    • Total assets below €3.5 million
    • Fewer than 10 FTE employees
    • Double-entry accounts using the abbreviated or micro model
    • File annual accounts with the National Bank of Belgium (NBB)
  • Large NPO:
    • Revenues above €9 million
    • Total assets above €4.5 million
    • More than 50 FTE employees
    • Double-entry accounts using the full model
    • File annual accounts with the NBB
    • Appoint one or more auditors to monitor financial situation and annual accounts

General Obligations

All NPOs are required to:

  • Draw up a budget for the following year, which must be approved by the General Assembly within six months of the end of the accounting year. The budget is an internal document and does not need to be filed with any third party.
  • Prepare a social balance sheet if employing an average of 20 or more employees per year, included in standardized templates for annual accounts.

New Obligations

As part of the CAC implementation:

  • Directors of companies and NPOs must register in the Ultimate Beneficial Owners (UBO) register by October 11, 2020.
  • NPOs will need to adapt their Articles of Association and file them with the Enterprise Court by January 1, 2024.

Compliance is Key

To ensure compliance with these new obligations, it’s essential for NPOs operating in Belgium to review their accounting models, filing requirements, and other regulatory demands. Failure to comply may result in fines or other penalties.