Gift letter for Danish tax payers
A gift letter (“gavebrev”) is an agreement with the IRCT about donating a fixed amount of your choice, from at least 50 Kr. per year over minimum 10 years. Such an agreement may result in very favorable tax deduction advantages, and can only be entered if you pay income tax in Denmark. The gift letter expires by death and is not passed on to descendants.
Signing a gift letter agreement implies the following tax deduction advantages:
- The maximum limit for tax deduction due to gift letters is 15% of your total taxable income. For example: if you have a total taxable income of 1 million Kr. and choose to make the most out of the tax deduction rules, you may choose to make a gift letter of the fixed amount of 150,000 Kr. yearly (15% of your taxable income), thus obtaining 150,000 Kr. tax deduction.
- The minimum limit for tax deduction is 15,000 Kr. This means that even though the gift giver has a total taxable income of less than 100,000 Kr., she or he, if donating 15,000 Kr. yearly, will always be able to benefit from deducting this full amount, even though 15,000 Kr. is more than 15% of the gift givers total taxable income.
- Cf. SKAT’s general tax deduction rules for donations to charities, your total contribution is deductable from your income tax without any lower limit.
How do you get tax deduction?
Reporting your donation to SKAT is the obligation of the IRCT (you are no longer allowed to do so yourself). For this purpose we need your name and CPR number which will be used exclusively for informing SKAT of your donation. You can inform Donor Service by e-mail DonorService@irct.org, by calling (+45) 33.76.06.00, or by adding your CPR number on signing up for NETS (PBS).
How to make a gift letter
2 - Fill in both forms
3 - Send the forms to:
DK - 1022 Copenhagen K
You can also ask our Donor Service by e-mail (DonorService@irct.org) to send you copies of the agreement form.
If you prefer, our Donor Service can assist you when completing the form. Please write DonorService@irct.org and provide the following information:
- Your name
- CPR number
- Amount of your yearly gift (minimum of 50 Kr.)
- Bank information (reg. no. and account no.), if you wish us to sign you up to NETS (PBS)
- When you wish the gift letter to enter into force
Read about the Danish tax rules about deductions for contributions to charities.
that you provide.