Recipients of donations
Applying for approval of an institution
The institution itself must apply to its local tax office for advance approval. The application must include the institution's articles of association, and it must be stated that the Storting or the ministry has been given access to appoint a representative to the institution's board of directors. The articles of association must also state that, in the event of dissolution, surplus funds will be used in accordance with the institution’s objects. In addition, an account should also be given of the institution's activities, along with a statement of the basis on which the conditions in Section 6-42 are considered to be met.
The tax office will send the notification of advance approval to the Directorate of Taxes, which if it has no objections, will then enter the institution in the list of approved institutions. If the conditions for approval are not met, the institution will receive a letter from the tax office stating that approval has not been granted. The letter will state which conditions are not considered to be met. The decision may be appealed to the Directorate of Taxes.
For more information on the conditions for being approved as an institution, see Assessment ABC, Non employment-related gifts and donations.
Reporting obligation to the Directorate of Taxes
Tax assessment statement: Donations to scientific research and vocational training.
Regulation on submission of tax assessment statements concerning donations to scientific research and vocational training.
Taxpayers can claim deductions for donations to institutions which, with the support of the State, carry out scientific research or provide vocational training; see Section 6-42 of the Tax Act. In the case of donations exceeding NOK 10,000, the deduction is limited to 10 percent of the taxpayer's general income (before the deduction for the donation) after deduction of the year’s carryforward loss and that of any previous years.
Deductions for donations to scientific research can be granted to both self-employed persons and personal taxpayers. However, deductions for donations to vocational training can only be given to self-employed persons, and it is a requirement that the vocational training is of importance to the taxpayer's enterprise.
In order for donations to an institution to be deductible for the donor, the recipient of the donation must be approved by the tax authorities.