When you do a good thing for those in need, you will receive sooner or later your reward. Thus, we remind you that each time when you company makes a dontion or a sponsorship the state grants some fiscal benefits.
Therefore, we encourage all our partners to support social responsibility actions through sponsorships and partnerships, especially by redirecting the annual tax on profit of 20%.
By donating the 20% of the income tax of you company, you can help sustain social responsibility programs for various disadvantaged groups.
If you wish to support a nonprofit organization, we confirm that besides the good that you’ll do, companies which sign sponsorship contracts have the following benefits:
1. The granted sponsorship reduces the income tax owed to the state for the year during which it was executed, within the limits provided by the Tax Code, namely:
- 5‰ of the turnover
- 20% of the owed income tax;
2. The sponsorship exceeding the limits established above shall be carried forward to the following 7 consecutive years. Even if the company does not record profit, it may grant sponsorships, with the granted amount being carried forward, in order to have it deducted from the income tax over the following 7 consecutive years;
3. Self-employed persons may grant sponsorships under the same legal conditions and the limit of the amount accepted for deduction from the tax owed to the state shall represent 5% of the amount resulted as the difference between the gross income and the deductible expenses (other than entertainment expenses and fees paid to trade associations).
The SPONSORSHIPS is the legal act by means of which two persons agree on the transfer of ownership of certain physical assets or financial means in order to support certain non-profit activities conducted by one of the parties.
Aspects to bear in mind!
Therefore, we encourage all our partners to support social responsibility actions through sponsorships and partnerships, especially by redirecting the annual tax on profit of 20%.
By donating the 20% of the income tax of you company, you can help sustain social responsibility programs for various disadvantaged groups.
If you wish to support a nonprofit organization, we confirm that besides the good that you’ll do, companies which sign sponsorship contracts have the following benefits:
1. The granted sponsorship reduces the income tax owed to the state for the year during which it was executed, within the limits provided by the Tax Code, namely:
- 5‰ of the turnover
- 20% of the owed income tax;
2. The sponsorship exceeding the limits established above shall be carried forward to the following 7 consecutive years. Even if the company does not record profit, it may grant sponsorships, with the granted amount being carried forward, in order to have it deducted from the income tax over the following 7 consecutive years;
3. Self-employed persons may grant sponsorships under the same legal conditions and the limit of the amount accepted for deduction from the tax owed to the state shall represent 5% of the amount resulted as the difference between the gross income and the deductible expenses (other than entertainment expenses and fees paid to trade associations).
The SPONSORSHIPS is the legal act by means of which two persons agree on the transfer of ownership of certain physical assets or financial means in order to support certain non-profit activities conducted by one of the parties.
- The following elements must be taken into account when executing a sponsorship:
- A sponsorship agreement must be concluded in writing, under the legal provisions (Law on sponsorship);
- The sponsorship may be granted in money and/or in kind;
- The sponsorship in kind must be assessed at its real value, which shall be mentioned in the agreement;
- The assets granted under the sponsorship actions do not include VAT if the total value of the assets granted within a calendar year does not exceed 3‰ of the turnover resulting from chargeable operations (the assets for which the VAT was not deducted shall not be taken into account);
- Any Romanian or foreign natural or legal person may act as a Sponsor.
Aspects to bear in mind!
- The tax benefits are applied in the case of companies that pay income tax and Self-employed Persons, but not in the case of microenterprises;
- The tax benefits are not granted if the company that provided the sponsorship and the sponsored entity are affiliates;
- The sponsorship is free!
Any presented information is general and is not meant to address the specific conditions of a particular individual or legal person. Although we try to provide accurate and up-to-date information, there is no warranty that such information is accurate at the time of its receipt or that it continues to be accurate. No action should be taken based on this information without relevant professional assistance following a careful examination of the circumstances that are typical of a particular state of affairs.
