The percentage designation mechanism in the Republic of Moldova: challenges and results [Articol]

Abstract

The percentage designation is a mechanism through which the natural person redirects part of the amount related to the state budget to the non-governmental sector. This action is made to a social utility organization or religious cult, selected by the individual. Although it is a relatively new phenomenon in our country, significant progress has been made in increasing the visibility of local organizations, making them more active, while people have started to redirect 2 percent of their income tax to a non-profit organization. For a better understanding of the percentage designation mechanism, as a concept, evolution and result in the Republic of Moldova, the author has set the following tasks: to define the concept of percentage designation; to highlight the purpose of the percentage designation mechanism; to examine the evolution of the legislative framework regarding the percentage designation mechanism; to analyze the course of percentage designation in the Republic of Moldova; to emphasize some results obtained by noncommercial organizations since the adoption of the law; and to determine key problems regarding the application of the percentage designation mechanism in the Republic of Moldova; and to propose recommendations by representatives of the associative environment regarding the improvement of the implementation of the percentage designation mechanism. For a more in-depth analysis, the author examined the annual reports of the State Fiscal Service regarding the percentage designation, legislative acts in the field, press statements of civil society representatives, website pages, articles and other relevant sources regarding the analyzed subject. In this context, it is mentioned that since its implementation the percentage designation mechanism is not perfect neither for its beneficiaries nor for taxpayers. Therefore, the recommendations highlighted in the article should be taken into account especially by the decision-making actors in the Republic of Moldova.