LAW ON DONATIONS FOR ARTS

In the end of 2005 a Law on Donations for Arts was adopted and came into force. The law regulates the social relations connected with making donation, aiming to create, preserve and promote the works of culture. According to the law Maecenas donation is gratuitous granting of aid from physical and legal persons for creation, preservation and promotion of works of culture, direct and/or through the organizations, supporting the culture, registered according to the law.

Organizations, supporting the culture, as of the law, are not-for-profit public benefit organizations, registered in the Central Register of not-for-profit public benefit organizations at Ministry of Justice, which objectives include supporting the culture and also registered in Ministry of culture. These organizations are able to perform the function as mediators between the Maecenases – donors and the artists – beneficiaries.

In relation with this law new tax incentives for the donations for culture were provided in the Corporate Taxation Act. Legal persons making donations for culture in accordance with the Law on Donations for Arts are entitled to deduct up to 15% from their financial result. Physical persons can use a tax incentive at the same amount making a donation in compliance with the rules of the Law on Donations for Arts.

In addition, exempt deliveries according to the Value Added Tax Act are the donations of non-excise goods and services made for beneficiaries and organizations, supporting the culture, according to the Law on Donations for Arts.

According to Local Taxes and Fees Act, the gratuitous granting of aid under the rules of the Law on Donations for Arts supporting culture is exempt from donation tax.