IEA INSIDER 2025
Association and Foundation: Legal and Fiscal Changes at IEA
BY JAN-PETER BROEK & BETINA BORISOVA
Legally and fiscally, IEA has undergone many transformations since its inception. For the past couple of years, IEA has been proactively strengthening its internal governance and compliance, while continuously optimizing its processes. In this article we explore IEA’s evolution over time, and also discuss some recent updates. HISTORICAL BACKGROUND The International Association for the Evaluation of Educational Achievement (“the Association”) was established in 1967 in Belgium, because Belgium was the only jurisdiction which permitted associations with foreign members. As the Association expanded, the responsibilities for the Studies, and the executive functions of Study Centers, were subsequently transferred to Stichting IEA Secretariaat Nederland (“the Foundation”), established in 1994 in the Netherlands. The objective was to consolidate both legal entities into a new organization based in the Netherlands. Consequently, all assets, liabilities, funds, and contracts were transferred from the Association to the Foundation in 1996. As a result, the Foundation holds the bank accounts, employs staff, and manages accounting, contracting, and related functions. This historical context has resulted in the Association (Belgium) and the Foundation (the Netherlands)—despite being distinct legal entities—operating as a single unified entity commonly referred to as “IEA.” This arrangement introduced legal and fiscal ambiguity regarding the responsibilities and functions of each legal entity. RECENT DEVELOPMENTS Due to a change in a Belgian law, which regulates international non-profit associations, in 2023 IEA was required to amend and modernize the Statutes of the Association. Since the adoption of the new Statutes, which
came into effect on 1 January, 2024, IEA has been engaged in further modernizing its governance and ensuring compliance with the laws and regulations of Belgium. Concurrently, IEA was required to renew its value added tax (VAT) ruling with the Dutch tax authority. This new ruling supersedes the previous VAT rulings from 2005 and 2007. The Dutch tax authorities have explicitly stated that the two entities are no longer able to be considered a single entity for all tax purposes, including VAT. THE WAY FORWARD As a result, as of 2025, the Association was legally and fiscally separated from the Foundation. Consequently, IEA now has separate bank accounts, accounting records, and budgets for the Association and Foundation. Reporting currency shifted from USD to EUR. Furthermore, contracts related to the activities of the Foundation are now signed by the Foundation and contracts dealing with the IEA Association membership are signed by the Association. In terms of invoicing, the membership fee is invoiced by the Association, while all other invoices—for example, the participation fees for international studies—are invoiced by the Foundation. The international IEA studies are not subject to VAT (the Netherlands), while VAT is applicable for the membership contribution (Belgium). Nevertheless, the practical separation between the Association and the Foundation has been kept to a minimum. The operations and work of IEA, as well as the membership in IEA, have not changed from what Members are accustomed to. Governance of the Association will continue to reside with the General Assembly, which will be carried out by the Standing Committee, which is responsible for overseeing all activities of the Association and the Foundation. ■
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