Council for volunteer sector calls for tax breaks and exemptions for NGOs

In the run up to the coming elections, the Malta Council for the Volunteer Sector (MCVS) tabled a set of proposals before to all three political parties, calling on them to "keep in mind the voluntary sector" which it insisted "is a key contributor in Maltese society, both on the economic as well as the social spheres."

The council's main proposals are:

- Preferential tax (Income Tax & VAT) treatment should be granted to voluntary/non-profit organisations established for the benefit of the general public.

- Donations made to approved organisations conducting certain categories of VOs may be deducted from the taxable income of the donating taxpayer/business.

- A taxpayer may claim an exemption on the transfer of property for a donation of property to a registered VO which has been approved for these purposes. On its part the VO may apply for exemption on Duty on Documents for donations of property received

- Certain VOs are VAT exempt without credit given the activity they engage into. It is hereby proposed that through a system of claims the VOs may recover the VAT paid.

- Fundraising events and activities carried out by enrolled Voluntary Organisations should be considered to be exempt from paying VAT through.

- Voluntary Organisations import both equipment as well as vehicles. Some of these goods including goods for cultural, educational, charitable, welfare or youth organisations. While there are concessions given to individuals who may import vehicles for personal use under special conditions, such as medical issues, unfortunately there is no concession on duties in relation to voluntary organisations.

- When paying utility bills, VOs are considered as 'commercial entities' since they do not fall under the other category which is 'residential'. It is being recommended that a third rate is introduced specifically for Voluntary Organisations.

The MCVS said "while it appreciates some measures being taken in favour of the sector, there are other crucial measures which need to be addressed in the coming years in support of the Voluntary Sector, and thus affirming the recognition of the Voluntary Sector's contribution towards the Maltese Community and its economy."

The full set of detailed proposals may be read by cliking: http://www.maltacvs.org/wp-content/uploads/2012/02/Tax-Exemption- Proposal-for-Voluntary-Organisations-Final.pdf