On July 7, 2022, the law amending legislation on philanthropy and sponsorship was adopted in second reading without changes to the main points adopted in the first reading. The law entered into force on July 29, 2022, and within 6 months, the Government will harmonise its normative acts with this law and will submit proposals to the Parliament for bringing other, related legislation in line with this law.
Tax benefits still need to be improved
One of the main changes necessary to promote philanthropic activities and encourage donations from the business and private sectors would be increasing the tax benefits for donors. The new law does not address this issue. Currently the donors have the right to deduct any donations for philanthropic or sponsorship purposes, but not more than 5% of the taxable income , but this does not serve as a real incentive for donors to give to the civil society sector.