Financing of Political Parties: Public Funding and Taxation
Direct public
funding of
political parties
Purpose of the direct public funding
for political parties
Basis for the direct public funding for
political parties
Special taxation
status of political
parties
Tax relief for donor
to political parties
Austria
Granted
• General party administration
• Election campaign activities
• Current representation in the legislature
No special tax
No tax relief
Belgium
Granted
• Non-earmarked
• Equal funding
• The threshold for receiving direct public
funding is representation in Parliament.
No special tax
No tax relief
Denmark
Granted
• General party administration
• Election campaign activities
• Non-earmarked
• Performance at previous election
No special tax
No tax relief
Finland
Granted
• General party administration
• Non-earmarked
• Current representation in the legislature
No special tax
No tax relief
France
Granted
• General party administration
• Election campaign activities
• Performance at current election
• Number of candidates put forward in
present election.
No special tax
Tax deductions
Germany
Granted
• Non-earmarked
• Performance at previous election
Political parties are
exempt from income, inheritance
and property taxation.
Donors receive tax
credits for the 1st
€ 1,600 and tax
deductions for an
additional € 1,600.
Ireland
Granted
• General party administration
• Performance at previous election
No special tax
No tax relief
Italy
Granted
• Election campaign activities
• Performance at current election
Granted
Tax deductions
Netherlands
Granted
• Socio-political education;
• To provide information to political party
members;
• To keep in touch with political sister
organizations in foreign countries;
• To support socio-political education for
the benefit of political sister organizations in foreign countries;
• Research activities developed by political parties;
• Activities promoting the political participation of youth.
• Current representation in the legislature
No special tax
Donors receive tax
deductions at 1% of
the taxable income
with a threshold
value of € 61.
Page 1 of 3
Financing of Political Parties: Public Funding and Taxation
Direct public
funding of
political parties
Purpose of the direct public funding
for political parties
Basis for the direct public funding for
political parties
Special taxation
status of political
parties
Tax relief for donor
to political parties
Portugal
Granted
• General party administration
• Election campaign activities
• Performance at current election
• The threshold for receiving direct public
funding is representation in Parliament
or at least 50,000 votes obtained in the
current election.
Granted
Tax deductions
Spain
Granted
• General party administration
• Election campaign activities
• Performance at current election
Granted
No tax relief
Sweden
Granted
• General party administration
• Non-earmarked
• Performance at previous election
• One part of the non-earmarked party
support is given on the basis of the current representation in the legislature,
and performance at the previous election. The support given to the general
party administration is based on the
performance at previous election.
No special tax
No tax relief
United Kingdom
Granted
• General party administration
• Policy development purposes
• Current representation in the legislature
No special tax
No tax relief
Norway
Granted
• General party administration
• Non-earmarked
• Performance at previous election
• Current representation in the legislature
No special tax
No tax relief
Switzerland
Granted
• Parliamentary Group administration
costs only
• Current representation in the legislature
No special tax
Donors receive tax
deductions in several of the Cantons.
Cyprus (G)
No direct public
funding
No special tax
No tax relief
Czech Republic
Granted
• Election campaign activities
• Non-earmarked
• Performance at current election
• Current representation in the legislature
Granted
Tax deductions
Estonia
Granted
• Non-earmarked
• Performance at previous election
No special tax
No tax relief
Hungary
Granted
• Non-earmarked
• Performance at previous election
• Current representation in the legislature
Granted
No tax relief
Latvia
No direct public
funding
No special tax
No tax relief
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Financing of Political Parties: Public Funding and Taxation
Direct public
funding of
political parties
Purpose of the direct public funding
for political parties
• General party administration
• Election campaign activities
Lithuania
Granted
Malta
No direct public
funding
Poland
Granted
• General party administration
• Election campaign activities
Slovakia
Granted
Australia
Basis for the direct public funding for
political parties
• The threshold for receiving direct public
funding is representation in the Seimas.
Special taxation
status of political
parties
Tax relief for donor
to political parties
Parties receive tax
credits
No tax relief
Political parties are
exempt from taxation.
No tax relief
• Performance at current election
• Performance at previous election
No special tax
No tax relief
• Non-earmarked
• Performance at current election
No special tax
No tax relief
Granted
• Non-earmarked
• Performance at current election
No special tax
Donors receive tax
deductions for a
maximum of
AUD 100 in an income year.
Canada
Granted
• General party administration
• Election campaign activities
• Performance at current election
• Number of candidates put forward in
present election
No special tax
Tax credits
Japan
Granted
• Non-earmarked
• Performance at current election
• Current representation in the legislature
Granted
Individual donor can
get tax exemption or
deduction. Corporations can count
donations as loss.
New Zealand
No direct public
funding
No special tax
No tax relief
United States
No direct public
funding
No special tax
No tax relief
Source: IDEA Handbook on Funding of Political Parties and Election Campaigns, 2004; Matrix on Political Finance Laws and Regulations, International Institute for
Democracy and Electoral Assistance, Stockholm. www.idea.int.
Compilation: Cesifo.
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