Application for approval of organisation
Organisations with a registered office within the EEA can also be approved under the donation deduction scheme under Section 6-50 of the Tax Act. The conditions for the deduction entitlement for donations to foreign organisations are the same as those which apply to deductions for donations to Norwegian organisations.
Norwegian organisations must apply to their local tax office for advance approval. Foreign organisations must submit an application in English, or alternatively in Danish or Swedish, to the Directorate of Taxes, which will then forward the application for advance approval to a tax office.
Click the link for the application procedure for foreign organisations.
Applications for approval must include:
- A statement that the purpose of the donation is not acquisition
- A statement of the type of activity that the organisation carries on and that the activity comes under approved purposes in Section 6-50 alternatives a) to f) of the Tax Act
- A statement and documentation verifying that the organisation is national in scope as of 1 January of the year in which the donation is received, e.g. a description of the scope of the activity and where the activity is being carried on, number of members/donors and their geographic distribution
- Documentation that the foundation is receiving state aid in the year in which the donation is received
- Articles of association, including the objects provision, as well as a dissolution provision stating that surplus funds in the event of dissolution will fall to a corresponding approval purpose
- Annual accounts and annual report
Under the requirement concerning national scope, the activity must extend beyond the local area, but need not cover all counties. The number of members and their geographic distribution will also provide an indication of the organisation’s activities and distribution. Local organisations affiliated to a central association which fulfils the conditions laid down in Section 6-50 of the Tax Act may be deemed to be national in scope. The condition for this is that the local organisations are bound by the central association’s articles of association concerning objects. It is furthermore a condition that it is the association's central organisation which is responsible for keeping accounts concerning incoming donations and which submits the requisite information to the Directorate of Taxes.
In the case of the approval of a foundation, documentation must be submitted verifying that it receives state aid.Religious and belief-based communities must also fulfil the requirement for national scope in order to be covered by the donation deduction scheme.
The tax office will send the advance approval to the Directorate of Taxes, which will enter the organisation in the list of approved organisations if it has no objections. If the conditions for approval are not met, the organisation will receive a letter from the tax office stating that the organisation has been rejected. The letter will state the conditions which are not considered to be met. The organisation may ask the Directorate of Taxes to re-assess the application.
Reporting obligation to the Directorate of Taxes
Approved Norwegian organisations must report incoming donations electronically via Altinn.
Information can be submitted via Altinn in one of two ways:
- Third party information - donations to certain voluntary organisations and religious and belief-based communities (RF-1310)
Manually completed form intended for statement submitters who have few statements to submit or who wish to report that the organisation has not received any donations during the year.
- Third party information as an attachment (RF-1301)
In this form, select “Donations to organisations” from the dropdown menu in the “Main form” tab. Under the “Overview – form and attachment” tab, you can upload one or more XML files containing statements and forms with attachments.
Until further notice, approved foreign organisations are unable to submit details of donations electronically to the Directorate of Taxes. Before 1 February of the year after that in which the donation was received, the foreign organisation must issue a receipt to the donor, stating the donor's name, address, Norwegian ID number/organisation number and amount received in Norwegian kroner. If the claim for a deduction is audited, the taxpayer must be able to produce this receipt for the tax authorities.
You can read more about reporting under Donations to certain voluntary organisations and religious and belief-based communities.
Tax Administration Act, 7-10(c). and Section 7-10 C of the Tax Administration Regulation
Taxpayers can claim a deduction from their taxable income for monetary donations to certain voluntary organisations and religious and belief-based communities. Section 6-50 of the Taxation Act. The total donation to an individual organisation during the income year must amount to at least NOK 500. Maximum deduction for donations to one or more organisations; see the rate for the year concerned. Deductions from taxable income can be granted to both businesses and private individuals.
In order for a donation to an organisation to be deductible for the donor, the recipient of the donation must be approved by the tax authorities. Norwegian organisations must also have reported donations that they have received to the Directorate of Taxes electronically via Altinn.no. When reporting, the donor must be identified through their national ID number and name.
The donation deduction will be pre-completed in the donor’s tax return for wealth and income tax (applies to personal taxpayers).
Until further notice, approved foreign organisations are unable to submit details of donations electronically. This means that the donor's deduction will not be pre-completed in their tax return, and must be entered by the donor themselves under item 3.3.7. Taxpayers will therefore not be able to use the submission exemption arrangement if they wish to claim a deduction for donations made to foreign organisations. Before 1 February of the year after that in which the donation was received, the foreign organisation must issue a receipt to the donor stating the donor's name, address, Norwegian ID number/organisation number and amount received in Norwegian kroner. The taxpayer must be able to present the receipt if the deduction is audited by the tax office.