COMPENDIUM CULTURAL POLICIES AND TRENDS IN EUROPE
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Private Sector Sponsorship: laws, schemes and targets

For more information see individual country profiles:

Chapter 5.1.5 "Tax Laws”

Chapter 6.3 "Trends and indicators for private cultural financing"

Chapter 7.3 "Emerging Partnerships or Collaborations"

 

Main law which outlines tax deductions to private sponsors of arts and culture

Government schemes to promote business sponsorship in the arts and culture

Main sectors attracting private sponsorship

Estimated value of private sponsorship generated per year

Albania

Law on Sponsorship, (2003)

NO

Performing arts

Information not available

Armenia

No tax benefits relating to cultural patronage

A state commission can exempt certain programmes from paying taxes

Music, mass culture and show business

Information not available

Austria

Sponsors’ Ordinance (1987) + regional legislation (tax breaks)

Some Regions (Länder) and cities offer special public contributions / services

Fine arts, performing arts and music

50m EUR (2013) = 1.94% of the overall public cultural funding

Azerbaijan

The Law of the Republic of Azerbaijan “On Grants” (1998)

Projects launched by the Ministry of Culture and Tourism to attract private sponsorship

Cultural heritage,  performing arts, cultural industries

Information not available

Belgium (Flanders)

No legal provision for corporate tax deductions of cult. investments

PPP programme (attractive for commercially profitable projects)

Concerts and festivals of classical music, art exhibitions

89m EUR (2011)

Belgium Francophone

No legal provision for corporate tax deductions of cult. investments

"Promethea" Association (linking the cultural and the economic world, mainly through sponsorship)

Information not available

Information not available

Bulgaria

Corporate Income Tax Act (2002): deductions increased from 5% to 10%.

No

Popular music concerts, literary publications, festivals, theatre performances

Information not available

Canada

Canadian Film or Video Production Tax Credit (CPTC) and Canadian Film or Video Production Services Tax Credit (PSTC).

Federal subsidies to arts projects often serve to lever private investment.

Media, libraries, heritage institutions,  performing arts

CAD 155m (2003-04) corporate, foundation and individual support for 198 performing arts companies and 113 public museums / art galleries

Croatia

Law on Capital Gains Tax (NN 177/04) and Law on Direct Taxes (NN 177/04): Donations of more than 2% of the annual income need Ministry of Culture certificate

NO

Concerts, festivals, art exhibitions

ca. 4m € (2013 CiV survey)

Czech Rep.

Act No. 586/1992: Business entities can deduct the value of a donation for cultural purposes from their tax base if the value of the donation is at least 2 000 CZK.

NO

Film, contemporary arts

Information not available

Denmark

Act nr. 1389 (2004): max. 25% of the donation deductible

NO

Museums, art and music festivals

Information not available

Estonia

Income Tax Act (1999): companies can deduct up to 3% - individuals up to 5% - from their taxable income for donations to non-profit organisations or 10% of last profits

NO

Private business sector has not yet shown any major interest in sponsoring culture

0.13m EUR (2012)

Finland

Income Tax Act: corporate donations for the arts, science or the preservation of Finnish cultural heritage tax deductable within certain minimum and maximum limits

No policies to encourage business sponsorship

Business sponsorship: visual art (art museums, main exhibitions), music (classical and popular, events) music theatre (operas, musicals).

17.4m EUR (2008)

France

Law on the Development of Sponsorship
(1987)
Mécenat Law
(2003)

Projects launched by the Ministry of Culture to attract private sponsorship

Music, Museums / Exhibitions, performing arts

According to ADMICAL, around 494m EUR corporate cultural invest-ments through corporate sponsorship

Georgia

No law to support private sponsorship of culture and the arts

NO

Theaters, festivals, and cultural heritage.

Information not available

Germany

Directive of the Ministry of Finance (BMF-Sponsoring-Erlass 1998): Series of tax breaks

Incentives mainly on the local government level

Fine arts and music

350m EUR (2010)

Greece

Law 3525/2007: tax exemptions

Central bureau to certify bona fide causes of cultural sponsoring proposals

Music and arts

Information not available

Hungary

Non-Profit Act (CLVI/1997): Up to 150% of donations to "Public Benefit Organisations" tax-deductible (limit: 20% of a company's tax base); up to 30% of personal taxes can be deducted for charitable purposes

Performing Arts Law (2008) provided extra state support for theatres, symphony orchestras and dance groups

Performing arts and classical music, large festivals, fine arts, film

4,3bn HUF = 16.5m EUR

Ireland

Tax Consolidation Act (1997): Tax breaks to encourage business sponsorship

Arts2Business Programmes; Arts Sponsor of the Year Award

Information not available

3.9m EUR (2010); Deloitte  survey: 12% of cult. institutions' turnover from private/corporate sponsorship

Italy

Law 342/2000: deduction of donations and sponsorship

Reshaping and extension of tax reliefs for donations and sponsorship and for investments in the cinema industry as well as through the institute of "concessions"

Cultural heritage, musical and performing arts, exhibitions and cultural events.

391m EUR (2011)

Latvia

Law on Enterprise Income Tax (1995): Tax Rebate of 85% for amounts donated to budget institutions (companies with functions delegated by the Ministry of Culture), as well as to foundations / societies registered in Latvia.

Costs of corporate social infrastructure facilities (education, culture, sports etc.) can be tax-deducted, if service fees are lower than market prices, or free of charge

Information not available

Information not available

Lithuania

Law on Charities and Promotion (1993 amended in 2011): defines administrative procedures of promotion, rights of donors & recipients, tax exemptions, control and accounting of donations and relief

"Maecenas of the Year" award introduced by the Ministry of Culture in 2010.

Theatre, Music, festivals

Information not available

Luxembourg

Article 112, Income Tax Law (L.I.R., 1967): Exemptions for donations to bodies recognized to be of public interest

NO

Public events (festivals), heritage

Information not available

FYR of Macedonia

Law on Sponsorhip and Donations (2007):Encourages individuals and companies to sponsor activities that are in the public interest (incl. arts and culture). Companies obtain reductions if they donate more than 5% of their total income.

NO

Popular music and folk concerts

Estimate: From January 2007 - June 2008, 2.5m EUR donated from the private sector (incl. for culture), reduction of ca. 50% in 2009

Malta

Corporate financial assistance to recognised non-profit organisations and / or to the Arts Fund eligible for tax deductions (2008)

Information not available

Cultural events, festivals

Information not available

Moldova

Law on Philanthropy and Sponsorship (2002): stipulates some tax deductions and state support for activities of philanthropy bodies, but without clear conditions

NO

Performing Arts, Cultural Events, Festivals.

Information not available

Monaco

Sovereign Edict N° 9 267 (1988): authorises tax deductions on sponsorship from corporate taxable income

Information not available

Opera, Ballet and Philharmonic Orchestra

Information not available

Netherlands

Gift and Inheritance Tax Act (2012) covers a number of aspects of fiscal law in order to make "giving to culture" fiscally attractive. The act also introduces a new multiplier of 125% which applies to donations made to cultural institutions.

Additionally there exist different tax incentive schemes relevant for the arts, media and heritage

Cultural Sponsorship Code (1990): Defines rules for sponsors and beneficiaries and sets framework for sponsorship agreements. Cultural Entrepreneurship Programme 2012-2016 (Ministry of Education, Culture & Science) supports entrepreneurial efforts of cultural organisations and producers (coaching, advice, supervision etc.) to find alternative funding.

Fine arts and music

287m EUR (2011)

Norway

Tax legislation in Norway provides no specific incentives for private sector investment in culture

NO

Festivals, theatres and orchestras

65.78m EUR (2006)

Poland

Income Tax Act (1993, amendments 2003): Deductions of donations up to 10% (legal persons) or 6% (individuals).
Law on income tax of individuals (2007) simplifies deduction procedure of 1% of annual income tax for donations to public benefit organisations

Cultural Sponsoring Code (2011): A set of rules for both sides. The code has no legal force, it acts as guidance and its usage is completely voluntary

Cultural institutions, large scale performances, film productions

Information not available

Portugal

Statute of Patronage (Law 74/99): regulates different types of patronage and sponsorship and increases available tax incentives (the highest level for long term contracts). Law 52A/2006 limits fiscal benefits to donations to public & non-profit sectors

No

Music, fine arts, large scale events

Information not available

Romania

Law on Sponsorship and Donations
(1999)

Information not available

Publishing, Film, Music

Information not available

Russia

Law on Charity and Charitable Organisations (1995); Law on Formation and Use of Endowment by Non-commercial Organisations (2006) – some amendments to actual legislation are planned

Special agreements between State administration and private corporations

Large-scale and fashionable events, festivals, exhibitions, well-known ‘labels’ in culture and the arts

Information not available

San Marino

Tax Law n. 91 of 1984 w. subsequent amendments: donations of individuals to culture are included in deductible liabilities

There are no specific policies or laws encouraging private individuals to invest in the cultural sector

Concerts, music and dance festivals, art exhibitions, performing arts, literature, cultural heritage

150 000 EUR (2008)

Serbia

Corporate Tax Law: permits deductions on income tax for cultural activities.

NO

Cultural centres, theatres, festivals, events

No information available.

Slovakia

Direct allocation of 2% from the individual income tax rate and corporate income tax to registered NGOs active in the arts and heritage

NO

Concerts, heritage, festivals (film, music…), film production, music & theatre performances, art exhibitions

Information not available

Slovenia

Corporate Income Tax Act: 0.3% deduction for donations to various good causes and also a special deduction for culture of 0.2% of taxable income, with the possibility of averaging over a three year period.

NO

Cultural centres, events and festivals

No information available

Spain

Tax Exemptions Act for Non-profit Organisations and on Sponsorship (2002): Income tax exemption for donations to non-profit bodies and public administration

NO

Classical music and painting

45.1m EUR

Sweden

No law to encourage private sponsorship of culture and the arts

Culture and Business Forum

ca. 50% of funds go to museums and art galleries, the rest to theatre and dance.

SEK 93bn (2002)

Switzerland

Donations / contribu-tions in the form of sponsorship are tax deductible (10% of net profits on federal level + specific regulations in the Cantons, e.g. tax deduction up to 100% in the Canton of Basel.

NO, except on the local level

Companies corporate identity to be promoted via their own concerts/theatre tours or through projects developed with artists / cultural institutions

300-500m CHF

Turkey

Law 5228 on Incentives for Cultural Investment and Enterprises (2006): A range of benefits, mostly under control of the Ministry of Culture & Tourism

Some incentives on the local level, mainly in Istanbul, or for specific events

Heritage, art exhibitions and museums, festivals, film

Information not available

Ukraine

Law on Charity and Charitable Foundations (1997) includes also private cultural sponsorship

Agreements and memoranda between the Ministry of Culture and private companies or funds

Concerts and festivals, arts exhibitions, visual art, theatre

Information not available

UK

Review of Charity Tax Law introduced major simplifications and improvements to the treatment of gifts to charities including  a tax efficient way to donate shares. Goals were to encourage private support of charities, among them many UK arts organisations, and to complement public money given to the arts, museums and heritage

Business Sponsorship Incentive Scheme

 

Arts & Business (A&B) advocates the mutual benefits of partnership between the private sector and the arts.

 

There are a number of schemes to encourage public-private partnerships using tax relief.

Exhibitions, dance, music, theatre, festivals, heritage

816m EUR (2009)

Source:     Council of Europe/ERICarts, Compendium of Cultural Policies and Trends in Europe, 15th edition, 2014, and national sources. In most cases, figures include contributions from foundations and other private donors. This overview has been updated with the support of Causales (Annual of Cultural Brands)