2021 was the fifth year during which individuals who pay taxes in the Republic of Moldova could direct 2% of their income tax to a noncommercial or religious organization. After processing the tax returns for 2020, it was determined that 34,800 persons allotted over 9.7 million lei in percentage deductions, IPN reports.

According to the State Tax Service, both the number of beneficiaries of percentage deductions and of taxpayers who allot a part of their income tax rises year by year. The number of beneficiaries rose from 534 in 2020 to 665 in 2021, while of taxpayers grew from 26,776 to 34,805.

As many as 29,336 taxpayers allotted 8,470,140 lei to public associations, while 5,439 taxpayers directed 1,268,830 lei to religious entities.

The percentage deduction under the 2% Law is the mechanism by which private individuals can allot 2% of the annual income tax to a national NGO. The mechanism was applied first on January 1, 2017 for incomes earned in 2016.

The mechanism can be used by resident private individuals who do not have overdue income taxes and who the previous year had earnings in the form of salary or interest or revenues from the provision of services.