About tax deductable donations to SMK
Help preserve our cultural heritage
When you or your company support SMK, you help us preserve and promote our Danish cultural heritage – from the beginning of painting to the art of tomorrow. Donations may thus help ensure that today’s generation as well as future generations know about Danish and international world class art.
Tax deductable donations
In 2012 new regulations of tax legislation which give increased tax benefits to the donator became effective. Since January 1st 2012 companies, private persons, private funds, estates of deceased persons etc. may deduct the value of donations to a larger extent than before.
For private persons the deductibility is a so-called deductible expense with a taxable value of 30 %. For example, if your donation has a value of 1,000.00 DKK, your tax-related saving will be app. 300 DKK. Please note that the tax value may vary from one assessment year to the next.
For further information about the deductibility for both private and business donations to SMK please read the following.
Is there a limit to the value of donations?
The regulations do not include a maximum for the value of your donation. However, there is a minimum of 500 DKK. and it is a requirement that SMK wishes to accept the donation.
SMK must document the value of the donation and, if needed, SMK must cover the necessary expenses related to a professional consultant.
Which donations are deductible?
- Private donators: works of art and cultural historical artifacts are deductible. Pecuniary gifts are not deductible.
- Business donators, i. e. business foundations, companies and persons or estates of deceased persons engaged in commerce or industry: Both works of art, cultural historical artifacts and pecuniary gifts are deductible.
Valuable considerations or donator conditions
You/your company only hold the right to deductions as long as there are no valuable considerations. In other words, the donation has to fall into the category of gifts as defined by Danish law: it has to be a free donation offered out of generosity.
If the donation is a contribution to a site development project, SMK must obtain the necessary approval prior to accepting the donation.
If the donation to SMK is connected to valuable considerations or includes certain conditions, it does not entail deductibility. However, for business-related donators there may be deductibility according to the rules of sponsorship and business expenses.
SMK reports the value of the donation to SKAT. The donator is himself responsible for including his donation in his income tax return.
Please note that there may be special circumstances in your case which differ from the above mentioned or is not described here.
For more information about donations and tax deduction go to www.skat.dk