Facilities offered by the Romanian state to non profit entities – 2%, 20%

There are three types of non profit entities in Romania:

  • associations
  • foundations
  • federations

The non profit entities are colloquially known as ONG (non-governmental organization) and they function based on donations from private parties. These entities do not receive funds from the government, do not have a political interest, and their activity is for the public benefit, hence the name “non-governmental organization”.

The laws governing these entities are Law nr. 21/1924, O.G. nr. 26/2000 and Law nr. 54/2003.

To actively participate in the law making processes and decisions, the non profit entities have to apply for registration with the Chamber of Deputies (Camera Deputatilor). Any entity can apply for registration, but it is at the discretion of the Chamber of Deputies to approve the request. Here’s a list of registered ONGs http://www.cdep.ro/informatii_publice/ong2015.chest_aprobate

Currently there are seven non profit associations that protect animals and are registered with the Chamber if Deputies.

The easiest, fastest and cheapest option for Romanian rescuers is to register a non profit association.

The Romanian state offers the following facilities to non profits:

  • any citizen paying taxes in Romania can redirect 2% of their taxes from the state to the association of their choice
  • any company paying taxes in Romania can redirect 20% of their taxes or 3 thousands of the total fiscal value of the company whichever is less
  • no tax is charged on non-economic activities. For instance the association does not have to pay taxes on donations, but it has to pay taxes on money received from selling promotional materials such as T-shirts, calendars, etc.

Disadvantages of registering a non profit association:

  • the obligation to have an accountant on the payroll and fill out taxes annually. Given the corruption among fiscal agency and the fact that the laws keep changing from one year to the other, it is rather risky to apply for a non-profit association.

The entity collecting taxes in Romania is called ANAF (Agentia Nationala de Administrare Fiscala)

Here’s more info about non-profit associations in Romania http://contabilul.manager.ro/a/658/22-organizatiile-non-profit.html (Romanian language)