As a result of a provision in the Fiscal Code, individual taxpayers may allocate two per cent of their annual income tax to non-profit entities established under ordinance 26/2000 on associations and foundations. For more information about the “two per cent law" and instructions about completing forms, please visit the website: http://www.doilasuta.ro.

It is important to note that this contribution is not a donation or sponsorship. Rather, it is a part of the state budget that a citizen can allocate to the NGO sector. In addition, the law is designed in such a way that confidentiality is maintained between employer / employee / beneficiary. An employer does not need to be directly involved in the completion of forms or the selection of a recipient organisation. This nuance was written into the law so that employers cannot have direct influence on the allocation of funds – and so that it is ultimately up to the discretion of the employee exactly how and where their two per cent will be spent. In addition, the beneficiary NGO will not know the specific individuals allocating funds, thus further promoting the confidentiality of the process.

In addition to the allocation of two per cent from annual income tax, an individual receiving a commercial income from a free profession or from intellectual property rights qualifies for a sponsorship deduction of up to five per cent of the taxable base. More and more Romanians are working as independent contractors, and the law has included the ability for these contractors to sponsor NGOs – and also benefit from tax deductions. The means of sponsorship by individuals and subsequent tax deductions differs from the “two per cent law”, but is aligned with the method available to corporations.

How does an individual make this contribution? Fill out a couple of basic forms. It’s that simple.

Step 1:

Donwload and complete Form 230 .

If you have income from a free profression or from intellectional property rights, download and complete Form 200.

**Note: we have already prefilled the necessary Romania Think Tank information in the forms for you.**

Step 2:

Send the completed forms by May 15th to your local financial administration office.

Thank you for your continued support!