Nongovernmental sector suggests amendments to fiscal legislation

The nongovernmental sector proposes devising new legislative acts and adjusting the existing ones, especially in the fiscal sphere, so as to facilitate the work of the civil society organizations (CSOs). Related issued were discussed in the International Conference on the Financing of Civil Society Organizations by the State: New Opportunities for Developing the Civil Society Sector of Moldova, Info-Prim Neo reports. Marina Shelaru, executive director of the Association of Professional Accountants and Auditors, said Article 53 of the Tax Code, which says the income obtained by the CSOs from auxiliary work is taxable income, should be removed and norms concerning the deduction of philanthropic costs only for the CSOs possessing public utility certificates should be included in the Tax Code. The participants in the conference also proposed amending Article 36 of the Tax Code so as to replace the deduction criteria and improving the mechanism for deducting the donations made by private individuals to CSOs so that this act is stimulated, not penalized. ”Another recommendation is to simplify the income statement so that it is presented in the same way as those for non-residents of Moldova. The sponsorship costs should be separated from philanthropic costs as they can be confused with advertising costs. The supply of goods and services to NGOs that work according to their status should be put under a zero tax regime instead of a VAT exemption regime. It is opportune to adopt a law on social entrepreneurship,” said Marina Shelaru. By the end of this year, the Association of Professional Accountants and Auditors aims to set up a hotline for the accountants working in the nongovernmental sector, through which to deal with the problems appearing in the implementation of the methodological guide on the accounting particularities in the noncommercial organizations, which came into force on January 1, 2011. ”We recommend working out a simple accounting and financial reporting system for the public associations as a component part of the methodological guide on the accounting particularities in the noncommercial organizations,” stated Marina Shelaru. The International Conference on the Financing of Civil Society Organizations by the State: New Opportunities for Developing the Civil Society Sector of Moldova was organized within the FHI 360 Moldova Civil Society Strengthening Program that is supported by USAID. It was held under the auspices of experts of the European Center for Not-for-Profit Law.