The 2% provision is a right of every paying citizen in Moldova and a fiscal transparency mechanism adopted in the Central and Eastern European countries. Redirecting can be done very simply by completing a standard form and submitting it to the tax authority to which the taxpayer belongs. The redirect is free of charge, ie it does not lead to any additional expense for the person submitting the form. The result is a transfer to the bank account of the organization designated as beneficiary of an amount representing up to 2% of the annual income tax paid in one year.
Redirecting is optional. If you have decided not to exercise this right, the corresponding 2% of the income tax you have paid will reach the public budget.
WHY TO REDIRECT 2%?
YOU CHOOSE the social cause to invest in. This means you have the opportunity to invest in solving a problem that you are particularly interested in, targeting 2% of what you pay to the state for a non-governmental organization of your choice.
It does NOT cost you anything to do a good deed. Redirect the money that represents 2% of the tax that you have already been charged in the previous year, which otherwise would be left to the state budget. You do not have to pay anything if you are doing it.
YOUR ACT MATTERS. By giving 2% of income tax to the APSCF or one of its eligible members, you can improve the life of a vulnerable child or a family at risk.
WHAT SHOULD YOU DO
Fill in the CET15 form (Personal Income Tax Declaration) with your data and those of the organization you chose as a beneficiary.
Submit the completed form to your tax authority. If you live in Chisinau, the address you need to go to is: State Tax Inspectorate, str. Constantin Tănase str., no. 9.
What is this 2%?
According to the employment contract, every employee has a gross salary, but receives a lower amount of net salary in his bank account. The difference was collected by the state and represents taxes and taxes, including the income tax. By completing the form, you are telling the tax administration how you want to spend 2% of the income tax you are paying.
According to the National Bureau of Statistics, the gross average earnings in May 2016 was 4863.9 lei, so the corresponding amount of 2% of the income tax paid annually amounts to 122 lei. A taxpayer with an average salary in the economy – 4863.9 lei – will be able to redirect about 122 lei to an NGO or religious cult in a year.
Who can redirect 2%?
Any person with fiscal residency in the Republic of Moldova who had an income, from a salary or other sources (trade, free trade, intellectual property rights, etc.) in the previous fiscal year and has no outstanding payment obligations.
What happens if I do not complete the form and do not redirect 2% of the income tax to an organization?
If you do not decide what NGO should get 2% of your income tax and do not submit the CET15 form to your tax authority until the deadline, the corresponding amount will go in the public spending. This means that you will no longer be able to control how this money will be used by the state administration.
Which organizations can benefit from redirecting 2% of income tax?
According to the law, taxpayers can redirect 2% of the income tax to a non-profit organization of public utility – NGOs or public associations and religious cults – who have previously registered with the Fiscal Inspectorate and have been approved by the Ministry of Justice.
What conditions must an organization meet for eligibility?
In order to benefit from a 2% redirect, an organization must a) work for at least 1 year, b) have no public debt, c) carry out activities exclusively for public benefit, d) have no political affiliation.
Why is it called redirect, not donation?
The equivalent of 2% is not a sponsorship or a donation. The amount is part of the income tax you pay anyway, and you can redirect it to a beneficiary organization – non-profit or religious cult.
How is the beneficiary organization receiving those 2% of income tax?
After the end of the tax year, the Ministry of Finance calculates the total amount for each beneficiary NGO. The corresponding amount of 2% of income taxes for the previous year is transferred to the Treasury account, which will then be transferred to the beneficiary NGO’s account.
What happens to the money once the beneficiary NGO receives it?
Beneficiary NGOs can only use the money to support activities stipulated in the basic statute and have 2 years to it. At the end of this period, the organizations must publicly report the destination of money and how did they use it.
The organizations you can redirect to have been approved in advance by the Ministry of Justice, and their list is published here (non-governmental organizations, Romanian language) and here (religious cults, Romanian language).
APSCF and eligible members’ data can be found here.
The last day you can submit the form is April 30, 2018.