The authorities will direct these funds to the beneficiaries, a total of 1,050 Moldovan non-governmental organizations. For the ninth consecutive year, taxpayers – individuals – have been given the opportunity to redirect 2% of their income tax to non-profit organizations or religious cults under the so-called percentage deduction mechanism.
Experts note that every year the transfers of citizens are growing. At the same time, the number of non-governmental organizations to which citizens send their funds is also increasing. As a rule, the largest number of such donations goes to churches. Traditionally, large sums are transferred to various unions – the Union of Veterans of the Ministry of Internal Affairs, the State Tax Service, and others.
The mechanism of a two-percent deduction for citizens’ income tax was introduced in Moldova by analogy with similar instruments used in different countries of the world to support and develop the civil sector. It was used for the first time in 2017 (for income received by individuals during 2016). It is available to resident taxpayers who have no income tax liability for previous tax periods. For this purpose, it is necessary to file an income tax return within the statutory deadline (April 30). This year, those wishing to make such a deduction were required to use an online platform.
