Around forty representatives of Civil Society Organizations and experts participated in the CSOs consultations meeting on the tax treatment of CSOs organized on the 28th of February 2023. The purpose of the meeting was to contribute to the improvement of the tax framework for CSOs as a key element of the environment in which they operate. This was in line with the coordinated efforts to improve the overall legal framework for CSOs having in mind the ongoing legislative processes in particular, the revisions of the Law on associations and foundations, Law on donations and sponsorships in the public activities and drafting of a Law on social enterprises. During the consultation meeting, the participants had an opportunity to inform themselves about the existing tax framework in the European Union countries and in the Republic of North Macedonia; to address the needs and challenges they face in the current tax framework; and to propose potential improvement to the tax legislation. The meeting was focused on three key taxation policies: taxation of income, value added tax and taxation of the philanthropic giving.
The participants agreed that the tax framework for CSOs ought to reflect the specifics of the nonprofit sector unlike the business entities, to recognize CSOs’ role in achieving broader public interest and to provide tax benefits for the CSOs’ philanthropic donors. In this regard, the conclusions underline the need for flexible tax solutions for CSOs having in mind their diversity and size, tax incentives for smaller and grass-root CSOs and simple administrative procedures for the tax benefits to companies and individuals that donate to CSOs.
Please see the link for the report and presentation.
