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Donations of money, artworks or other assets are vital to continue the development of the Irish Museum of Modern Art’s programmes. Donations are gratefully accepted through the Development Office.
Please contact :
Irish Museum of Modern Art
Tel : + 353 1 612 9900
Fax : + 353 1 612 9999
Email : firstname.lastname@example.org
The Irish Taxation System promotes tax-efficient donating to IMMA, and other charities and approved bodies, through specific provisions designed to facilitate assistance to the Arts. The attraction of these provisions is that they enable taxpayers to make tax payments or to donate works of art in a way which directly and identifiably benefits the Arts.
The provisions form part of a wider body of tax law which is intended to foster a greater appreciation of art and to maintain and enhance the national collection.
Income tax, capital gains tax, capital acquisitions tax and corporation tax liabilities may be mitigated or eliminated through either financial donations or by donations or loans of works of art.
These imaginative provisions give taxpayers with an interest in art an opportunity to assist directly with the development of art in Ireland and the maintenance of Ireland’s cultural heritage.
The above information has been compiled by PricewaterhouseCoopers and IMMA. Please note that Irish tax laws are subject to changes and amendments. Please contact any of the parties listed below to confirm that the information contained here is correct.
Donations to Charities & Approved Bodies (Section 484A, Taxes Consolidation Act, 1997)
Section 848A provides relief for direct financial assistance to Charities and Approved Bodies (The Irish Museum of Modern Art is an Approved Body). The relief is a means of directly funding the Arts in Ireland. Criteria
How to claim relief
- Relief applies to donations of €250 or more to IMMA. (An upper limit of 10% of income applies where the donor is associated with IMMA, such as an employee or Board Member)
- The donation must be:
• Not conditional on / associated with any arrangements involving the acquisition of property by IMMA (other than by gift) from the donor
• The donor receives no benefit directly or indirectly as a consequence of the donation
- Self assessed individuals and companies – claim a tax deduction on their tax return
- PAYE Taxpayers are treated as making the donation net of tax. IMMA then reclaims the tax paid from the Revenue Commissioners
Example : PAYE taxpayer who pays tax at 42%, makes a donation to IMMA of €500. The value of the donation is actually €862 : €500 plus €362 (€362 is the tax already paid by the donor, which is reclaimed by IMMA from the Revenue)
- PAYE Taxpayers complete an “Appropriate Certificate” (CHY 2) to enable IMMA to reclaim the tax
Payment of Tax by Donations of Heritage Items (Section 1003, Taxes Consolidation Act 1997)
The donation of a work of art to IMMA can be used to settle a tax liability. Such donations can be used to pay income tax, capital gains tax, gift / inheritance tax or corporation tax.
Heritage items include any kind of cultural item, for example paintings, manuscripts, books and any collection of cultural items which is determined by a Selection Committee to be :
- An outstanding example of its type
- Pre-eminent in its class
- The export from / import into Ireland would diminish / enhance Ireland’s cultural heritage
- Is valued at not less than €150,000 (total annual limit €6m)
- Is suitable for acquisition by the Irish Museum of Modern Art
Note: The 2009 budget now offers 80% of the value of donated artwork against tax.
How to claim relief
- Request the Selection Committee to make a determination under above criteria (form available from Department of Arts, Sports and Tourism)
- Selection Committee requests the Revenue Commissioners to value the item(s) and this value represents the amount which can be set against a taxpayers tax liabilities
- Museum will issue a certificate to the donor (copy to Revenue) certifying receipt of the gift and transfer of ownership
- Donation must happen within one calendar year
Sale of Works of Art Loaned for Display (Section 606, Taxes Consolidation Act, 1997)
Section 606 provides an exemption from Capital Gains Tax on the sale of Works of Art by a taxpayer which have been on public display for 10 years. The disposal can be to any purchaser, that is not just to a gallery or museum. It can apply to non-Irish items as well as Irish items of Art.
If the taxpayer disposes of a work of art which meets the criteria below, no capital gains tax (currently 25%) arises.
This applies to Works of Art including pictures, sculptures and prints which,
- In the opinion of the Revenue Commissioners have a market value of not less than €31,740 (the Revenue may consult experts)
- Are included in / the subject of a display to which the public has reasonable access
- Must be on loan for 10 years in a gallery / museum approved by the Revenue Commissioners (The Irish Museum of Modern Art is approved)
How to claim relief Typically the taxpayer approaches the Museum The Museum’s Acquisition Committee take a decision on the suitability of the work in the context of the Museum’s growing Collection IMMA provides a letter of confirmation that the criteria has been complied with
Gift / Inheritance Tax (Section 77, Capital Acquisitions Tax Consolidation Act 2003)
Section 77 provides a Capital Acquisitions Tax (CAT) exemption for certain heritage property items which are included in a gift or an inheritance. The relief is available provided that the item(s) is made available for viewing to the public (not necessarily in a museum or gallery) and is not sold for 6 years after the gift / inheritance is made.
A Gift / Inheritance tax liability (currently 20%) arising on receipt of the heritage object can be eliminated if the criteria below are met.
The relief applies to heritage objects which includes pictures, prints and books
- Which appear to the Revenue Commissioners to be of national, scientific, historic or artistic interest
- Are kept permanently in the State (except for temporary absences authorised by Revenue)
- Where reasonable viewing facilities are allowed to the public, recognised bodies / associations of persons
How to claim relief
- The recipient / beneficiary claims on self-assessment CAT form
- Include details and valuation of item(s)
- Details of viewing facilities (hours, address)
Relief is clawed back if the item is sold within 10 years (unless by private treaty to certain galleries, museums and other institutions).