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. Redirecting is free of charge, it does not give you any extra expense for the person who completes the form. The result is the transfer to the account of the organization designated as beneficiary of an amount representing up to 2% of the annual income tax paid in one year.
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) and here (religious cults).
Redirection is optional. If you have decided not to exercise this right, the corresponding 2 percent of the income tax you have paid will reach the public budget.
WHY TO REDIRECT 2%?
YOU CHOOSE in which social cause to invest. Since last year, 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. Redirected money represents 2% of the tax that you have already been charged in 2017, which otherwise would be in the state budget. You do not have to pay anything when depositing the form.
YOUR GESTURE COUNTS. By targeting 2% of income tax to the APSCF or one of the 29 eligible APSCF members, you can improve the life of a vulnerable child or a family at risk.
WHAT SHOULD YOU DO
1. Fill in the CET15 form (Personal Income Tax Declaration) with your data and those of the organization you chose as a beneficiary. APSCF and eligible members’ data can be found here.
2. Submit the completed form to your tax authority. If you live in Chisinau, the address you need to go to is: State Tax Inspectorate, 9 Constantin Tanase street. The last day you can do is April 30, 2018.
FAQ
What is this 2%?
Every employee has a gross salary in the employment contract but receives a lower amount of net salary in his account. The money gap was collected by the state and represents taxes and taxes, including income tax. By completing the form, you pass on to the tax administration how you want to spend 2% of the income tax you pay.
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 domiciled in the Republic of Moldova who earned salary, salary or other sources (trade, free trade, intellectual property rights, etc.) in the previous fiscal year (in the present year 2017) and has no outstanding payment obligations for income tax.
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 to what NGO to redirect 2% of your income tax and do not submit the CET15 form to your tax authority until 30 April 2018, the corresponding amount will reach the public budget. 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 beneficiaries 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% in cash 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 nonprofit organization or religious worship.
How do I get funds for the organization for which I chose to direct 2% of income tax?
After the end of the tax period, the Ministry of Finance calculates the total amount for each beneficiary NGO. The corresponding amount of 2% of income taxes for 2016 is transferred to the Treasury account, which will then be transferred to the beneficiary NGO’s account not later than September 2018.
What happens to the money once you get into the account of the NGO that I have chosen as a beneficiary?
Beneficiary NGOs can only use the money to support activities under the basic statute and have 2 years to spend. At the end of this period, organizations must publicly report the destination of money and how you use it.