Expansion of tax incentives for donations to art and culture (“package of laws governing donations and charity”, 2015)

Until the end of 2015, donations to bodies listed explicitly in the Austrian Income Tax Act (e.g. Austrian National Library, Austrian Film Institute) were tax-deductible. At the initiative of the Federal Chancellery, responsible i.a. for the arts and culture, new tax incentives for private arts and culture funding have been elaborated in cooperation with the leading Federal Ministry of Science, Research and Economy, which holds primary authority. With the package of laws governing donations and charity passed in 2015 and in force since 1 January 2016, the tax-deductibility of contributions (financial and in-kind) has been extended to all non-profit bodies that:

• conduct artistic activities serving Austrian arts and culture generally accessible to the public (e.g. a theatre organisation that mounts performances or a regional association organising a music festival)
• have had their eligibility for funding confirmed by public authorities (which means: they receive public funding at least every two years from the federal or regional (Laender) level or from the City of Vienna, and are listed in the publicly accessible “Transparency Online-Portal” on subsidies);

Beneficiary bodies need to obtain a certificate on their eligibility for tax-deductible donations from the Federal Ministry of Finance. All approved beneficiary bodies are open to inspection by potential donors in a public online register, administered by the Federal Ministry of Finance.

For the calendar year of 2016, the law provides for the retroactive deductibility of donations to approved beneficiary bodies in the field of art and culture.

Further the package of laws governing donations and charity amended the Federal Foundation and Fund Act, aiming to stimulate more funds given to and by foundations for charitable and public purposes. The new regulation eases the administrative burden to set up foundations and funds for charitable/public purposes and enables them to become part of the tax-deductible framework.