Current redirectioning system for donations in Romania could be changed

The experts that work at the Economic Code project are considering the replacement of the current redirectioning system of 2 percent of the tax per income with donations from the personal deductions system from overall income of taxpayers, says the Public Finance Ministry.

„A wide range of specialists are part of work groups, analyzing the concept of administration of the overall income and work on a personal deduction system, including NGOs sponsorship or donations for humanitarian causes. The civil society might have the possibility of obtaining higher amounts of financing than the ones obtained from 2 percent redirection,” says the Ministry.

The Ministry says that the experts discuss several options: either keeping the current redirectioning system of 2 percent from the income, or introducing the donation in the personal deductions system from the taxpayer’s income.

In the next system, the donated amounts might be deducted integrally in the limit of RON 1,000/member of household.

After closing the analysis and the simulations, the Economic Code project will be opened to public debate and forwarded to the Romanian Parliament, says the Ministry.

According to the Economic Code project, in development, the flat tax of 16 percent be replaced with a tax per income of 10 percent of the income of households.