Swedish government seeks to expand gift tax deduction regulations

Sweden’s Ministry of Health & Welfare has commissioned an inquiry into how the regulations on tax deductions for donations could be expanded to include more public benefit purposes.

Currently, private individuals and legal entities can receive a tax deduction for donations to nonprofit organisations approved by the Swedish Tax Agency that promote social welfare or scientific research. Organisations operating in other areas of public benefit are not included.

The investigation will include the analysis and submitting of proposals on how the regulations can be expanded, as well as the consequences for the nonprofit sector, relevant authorities and businesses that may be approved as recipients of donations.

Giva Sverige has been working since the tax reduction for gifts was reintroduced in 2019 to ensure that the regulations cover all public benefit purposes.

Giva Sverige Secretary General Charlotte Rydh commented:

“All donors, regardless of what they are committed to and give to, should be treated equally. Therefore, all charitable purposes must be included in the tax deduction for gifts. The fact that the government is now appointing a special investigation to review the issue is therefore an important breakthrough.”

The issue is particularly relevant, Giva Sverige notes, because the Swedish Riksdag (the country’s parliament) recently introduced a tax reduction for gifts from legal entities commencing 1 January 2026. That regulation is also based on the same purpose limitation that applies to gifts from private individuals.

Giva Sverige also wants to see changes that strengthen the integrity of donors and reduce the administrative burden for nonprofit organisations.

Minister of Social Affairs Jakob Forssmed commented:

“We are now developing proposals to further strengthen the conditions for civil society by expanding the gift tax deduction to more purposes. Such improvements will lead to more resources being allocated to civil society and stimulate people to increase their commitment and giving.” 

The investigation will begin on 1 September and is to be reported no later than 15 March 2027.