The 2017 was the first year in Moldova when individual taxpayers had the right to designate 2% of their income tax to a noncommercial organization. Legal Resources Centre from Moldova made an analysis on the results of the first year of implementation of the 2% mechanism.<\/p>\n
In the first year of implementation, 484 noncommercial organizations (413 associations, foundations and private institutions and 71 religious cults and component parts) have registered in the List of 2% Beneficiaries. Only 302 of them (about 62%), received percentage designations, 86% (260) of which are NGOs, and about 14% (42) – religious entities. The total number of organizations registered in the first year represents about 5% of the total number of non-commercial organizations registered in the Republic of Moldova.<\/p>\n
In 2017, 21.204 taxpayers designated MDL 4,140,868.43 (circa USD 244,588\/EUR 210,090) to the beneficiary organizations. They represent about 10% of the total number of taxpayers who filed their income declarations in due time (1 January \u2013 2 May 2017). On the average, in 2017, each taxpayer designated MDL 195 (USD 11.51 \/ EUR 9.89).<\/p>\n
Only 68% of the amount designated by the taxpayers were transferred to the beneficiary organizations (MDL 2,821,243.60 (approximately USD 166,642 \/ EUR 143,138).) About 24% of the number of designations and 32% of the designated amount (MDL 1,319,624) were invalidated because of the debts on income tax, not paid by taxpayers for the current or previous years.<\/p>\n
After the validation of the designations, 90% of the amounts went to the NGOs (MDL 2,543,114.45), and 10% to the religious entities (MDL 278,129.15). The largest amount received by an organization in 2017 was MDL 1,374,555.89 (USD 81,190 \/ EUR 69,739), which represents 49% of the total amount validated. The beneficiary of this amount is the Public Association of Veterans and Pensioners of the Ministry of Internal Affairs of the Republic of Moldova.<\/p>\n
The complete information on the first years of the implementation of the 2% mechanism is available here<\/a>.<\/p>\n The report was drafted within the project “Promotion of the 2% designation mechanism in the Republic of Moldova” implemented with the support of the European Center for Not-for-Profit Law (ECNL) and FHI360 Moldova and was possible by the generous support of the American people through the United States Agency for International Development (USAID).<\/em><\/p>\n The report in Romanian is available here<\/a><\/strong><\/p>\n