Tax concessions for sponsorships to "Inima pentru Inima" Foundation

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Sponsorship is the legal act by which two persons agree on the transfer of ownership of material goods or financial means to support non-profit activities carried out by one of the parties, called the beneficiary of the sponsorship.

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The profit tax  payer who perform sponsorships according to the Roumanian Law no. 32/1994 on sponsorship, with subsequent amendments and completions, the expenses incurred are non-deductible but the related amounts are deducted from the profit tax due at the level of the minimum value between the following:

• the value calculated by applying 0.5% to the turnover;

• the value representing 20% of the due profit tax.

 

The amounts that are not deducted from the profit tax are carried forward for the next 7 consecutive years. The recovery of these amounts will be carried out in the order of their registration, in the same conditions, at each term of payment of the profit tax.

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In the case of payers of income tax on micro-enterprises, starting with April 1, 2018, the entities that carry out sponsorships according to the Law no. 32/1994, with the subsequent amendments and completions, for the support of non-profit and religious organizations, which are accredited social service providers with at least one licensed social service, decrease the related amounts from representing 20% of the income tax of micro-enterprises due for the quarter in which they registered the respective expenses.

The amounts that are not deducted from the tax on the income of micro-enterprises due are carried forward in the following quarters, for a period of 28 consecutive quarters. The deduction of these amounts from the micro-enterprise income tax due, in the next 28 consecutive quarters, is made in the order of their registration, under the same conditions, at each term of payment of the micro-enterprise income tax.

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"Inima pentru Inima" Foundation

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