NGOs & Public Entities > Declaration and Payment >
An NGO or a public entity can and should provide also for the registration of other tax liabilities, according to the legislation in force, in line with the its activity.
In case of performing a lucrative activity, the tax liabilities for which a Non-Profit Organization is charged are:
Despite the nature of the activity, profit or non-profit, the social security contributions and health care insurance, and the tax on employment incomes (personal income), are mandatory tax liabilities.
Each NGO is part of the category "employers".
Value Added Tax: A NGO is obliged to register for VAT if it carries out economic activities, taxable supplies of goods or provides services against payment based on the provisions of the Law no.92/2014 "On Value Added Tax".
Income tax: A NGO is required to register for the tax liability for income tax, if it carries out economic activity and generates taxable income according to the provisions of the Law no.8438, dated 28.12.1998 "On Income Tax."
Tax at Source: In fact, withholding tax at source is directly connected with the personal income taxation of individuals. Mainly this technique of the tax payment applies to withholding the tax at source for payments related to different types of services carried out by third parties, not registered with the tax authorities, as the trader.
Such payments can be the payments for rented facilities, benefits of membership in a supervisory council, etc.
The NGOs are excluded from the following taxes: