How Legal and Tax Support Can Reinforce the Innovative and Inclusive Power of Social Enterprises

Abstract

In this chapter, the societal goals pursued by Dutch social enterprises are discussed from both a legal and a gender perspective. We examine the Algemeen Nut Beogende Instelling (ANBI) tax status that applies to public benefit organizations and the Sociaal Belang Behartigende Instelling (SBBI) tax status that applies to other organizations representing social interests. To be eligible for ANBI, an organization must demonstrate that it pursues a public benefit purpose. To qualify as an SBBI, an organization must promote or represent a socially relevant interest (that is a social interest) and be exempt from corporate income tax. We discern how the public benefit purpose of ANBIs and the socially relevant interest of SBBIs are understood by the Dutch legislator. We then evaluate possibilities for legal reform via company and tax legislation to support social enterprises in their societal goals and which, indirectly, can have a positive effect on gender equality.

Keywords: Dutch social enterprises, Algemeen Nut Beogende Instelling (ANBI) tax status; public benefit companies; Sociaal Belang Behartigende Instelling (SBBI) tax status; social benefit companies; societal goals; gender equality