VOLUNTEERING INFRASTRUCTURE

Non-profit companies: Non-profit companies, established and registered under the CompaniesLaw/Cap 113, are defined as associations formed as a company with a purpose to promotecommerce, art, science, religion, charity, etc. Their profit, if any, or income is used for thepromotion of their purposes and possible surpluses are not distributed to their membership.Other legal entities: Other organisational forms which have an independent legal personalityunder specific laws include the Cyprus Red Cross (Law 39 of 1967), the Boy Scouts Association(the Boy Scouts Association Law Cap 34) and the Cyprus Girls Guide Association (the CyprusGirls Guide Association Law 81/1968).Legislation on fundraisingFundraising is regulated by the Street and House to House Collections Law - Cap. 95. N. 41/73.The law specifies all procedures and measures on the conduct of fund-raising activities includingthe granting of licences, implementation procedures, measures to combat unlawful acts, theresponsibilities of the organisers, procedures on accounts and on the application of the funds,the competences of public or independent authorities, etc.Fiscal legislationThe following fiscal legislation has an impact on volunteering in Cyprus:The Capital Gains Tax Law/1980 states that Capital Gains Tax is not levied on a gift made foreducational, instructive or other charitable purposes to a local authority or to any charitableinstitution in the Republic.The Value Added Tax (VAT) Law/2000 exempts VAT for the supply of services or goods bynon-profit organisations in the fields of welfare, social security, protection of children, youngpeople or the elderly and physical education and culture.The Income Tax Law/2002 is the law that qualifies voluntary organisations for tax exemptions.“Charitable status” is a tax-related advantage, granted to organisations by the Ministry ofFinance and allows tax exemption on donations.Current developmentsSince 2008, a process for assessing the legal and regulatory framework of voluntaryorganisations, NGOs has been initiated. Before the submission of this chapter, the initiativesincluded the conducting of an assessment report on the legal and regulatory context ofNGOs, and the drafting of the provisions of a proposed new legal status for NGOs and apublic consultation. Since the whole process has not been finalised, unfortunately no otherinformation can be provided.87 Volunteering infrastructure in Europe 6 Cyprus