This Friday, Parliament approved a government proposal that increases from 0.5% to 1% the amount paid to the IRS that each taxpayer can allocate to charitable, religious, cultural or environmental institutions.
The measure was considered viable overall with no dissenting votes.
The opportunity for taxpayers to donate part of their tax revenues to a legal entity has been enshrined in law since 2001, and a list of entities applying for such a donation is published annually.
According to the Ministry of Finance, in 2023 taxpayers allocated €33.2 million to the IRS, which exceeds the €30.5 million allocated a year earlier, with the amount allocated to more than 4,700 entities.
The law allows taxpayers to choose an organization that will benefit from a portion of their IRS, with the amount received being donated by the government, since for individuals, the measure does not affect the tax they must pay or the refund they receive.
In addition, it is possible to take into account the tax benefit obtained by deducting VAT on expenses of a restaurant, hair salon or workshop, in which case the taxpayer effectively gives up part of his tax.
The selection of entities to which this portion of the tax can be attributed is made at the time of filing the annual IRS return, and this year the list of these entities exceeds 5 thousand.
Author: Lusa
Source: CM Jornal
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