NGO and the taxes
 

Improving the legal and the fiscal framework
 

Within the project "Comparative review of tax laws" from the MCIC Programme for strengthening the NGO, on 17 December 2002 in Skopje, a tribune on "NGO and the taxes towards common development goals - improving the legal and the fiscal framework" took place.
 
Regarding the review of the present situation in the Republic of Macedonia in comparison to the countries in Central and Eastern Europe, a word was given by Slavko Lazovski from the Ministry of Finance. He emphasized the taxes that NGO pay and the necessary changes, the Value Added Tax and the NGO and the possibility to introduce a "1% Law", which consists in the possibility to direct 1% of the taxpayers taxes towards an NGO that will best realize their expected goals and interests. 

Saso Klekovski, MCIC Executive Director spoke about the necessary changes and the legal and fiscal framework for the NGO. He emphasized the need to mobilize home resources, since the foreign donations are being reduced. Being dependent on foreign donations is what the civic sector has been mostly criticized of. In that direction there is a need of some tax relief that will encourage the taxpayers to donate in the NGO. However, the existing tax regulation makes it unable.  

"The first necessary change refers to the possibility that civic associations and foundations perform economic activities", said Borce Davitkovski, professor at the Faculty of Law. He emphasized the concrete proposals that refer to the changes in the legal framework for NGO, that is the changes that would be made in the existing Law for civic associations and foundations. "We also need to elaborate the article 3 that refers to a more precise determination of the impossibility for performing political activities for civic associations and foundations", said among other things Davitkovski.

As a key change he pointed to the need to introduce a new act in the Law that will refer to the Public benefit organizations. Facilitators at the tribune were Lenka Petkovska from the Ministry of Finance, Violeta Seizova from the Public Revenues Bureau and Vesna Pendovska, professor at the Faculty of Law. Civic associations' representatives from various sectors took part at the tribune as well.

 

G.Sh.