Guidelines for companies, foundations and personally owned companies
How much can one give?
The limitation on the maximum amount for monetary gifts has been lifted, so it is now possible to make a tax-deductible gift of unlimited size.
What gifts qualify for a deduction?
It is possible to deduct the market value of gifts in the form of art works and objects of cultural and/or natural historical significance to an unlimited extent.
What conditions must be met in order to make a deduction?
A gift to the National Gallery of Denmark is deductible as long as the following conditions have been met:
- The gift to the National Gallery of Denmark is not associated with any form of quid pro quo or limitations on the part of the Gallery.
- The gift is given for use by the National Gallery of Denmark as part of its cultural activity.
- The gift has a minimum value of DKK 500.
What if the donation is given on a quid pro quo basis?
If the gift to the National Gallery of Denmark is on a quid pro quo basis, or if the gift is conditional, we would like to point out the possibility of a deduction for sponsorship agreements.
Through a sponsorship agreement, companies can deduct contributions to the Gallery in return for the right to advertise their name, brand or company profile. The company can also deduct advertising expenses in connection with taxable business and deductions for operational expenses accrued over the course of the year for generating, securing and maintaining income.
What are the practical aspects of the deduction?
The National Gallery of Denmark refers to an appraiser appointed by the Ministry of Culture, who will assess the value of the gift.The National Gallery of Denmark also handles reporting of the gift to the tax authorities in accordance with the Tax Control Act. Donors are responsible for recording the gift in their own accounting records.
Source: Law no. 1389 of 20 December 2004
For more information, see the Danish Tax and Customs Administration website