Grants for scientific research and vocational training
In order for a grant to an institute to be deductible for the donor, the tax authorities must approve the recipient of the grant according to the Taxation Act.
Application for the approval of an institute
The institute must apply to the local tax office for advance approval. The application must include the institute's articles of association, which must contain a provision for the Storting or the ministry to appoint a representative to the institute's board of directors. The articles of association must also determine that surplus funds after an eventual dissolution must be used in accordance with the purpose of the institute. Furthermore, the institute must provide an account of its activity and state which terms of section 6-42 it considers to be met.
If the tax office considers the conditions are met, the institute will be entered on the list of approved institutes. If the conditions are not met, the tax office will send a letter of rejection to the institute stating which of the conditions are not considered to be met. If the institute does not agree with the tax office's evaluation, the institute can submit the case to the Directorate of Taxes.
Read more about the conditions for approval of an institute in the guide Skatte-ABC, Gaver og tilskudd utenfor arbeidsforhold (in Norwegian only).
Reporting responsibilities to the Directorate of Taxes
Taxpayers may claim deductions for grants to institutes, which, with central state involvement, carry out scientific research or vocational training. See section 6-42 in the Taxation Act. For grants exceeding NOK 10,000, the deduction shall not exceed 10 percent of the taxpayer's ordinary income before such grants are deducted and after the current year's, and eventual earlier years, loss carried forward is deducted.
Both business and personal taxpayers can claim deductions for grants for scientific research. However, only businesses can claim deductions for grants for vocational training, and it's a requirement that the vocational training is of significance to the taxpayer's business.
In order for the grant to an institute to be deductible for the donor, the tax authorities must approve the recipient of the gift.