Redirecting Amounts from Tax Owed by Companies for Sponsorships

Abstract

Starting from 1 January 2024, the Government Emergency Ordinance No. 115/2023 brings a series of changes and additions to the Fiscal Code with regard to redirecting profit tax for sponsorship and/or acts of patronage and for granting private scholarships. Thus, a procedure was issued, approved by the Order of the President of the National Agency for Fiscal Administration No. 3562/2024, which applies starting with redirecting the profit tax owed for the fiscal year 2024/the amended fiscal year starting in 2024, replacing the current procedure, provided in the Order of the President of the National Agency for Fiscal Administration No. 1679/2022. If profit tax-paying companies grant sponsorships and their value is less than the available tax loan, the remaining difference can be redirected via form 177 until the legal deadline for submitting the annual income tax return, also for sponsorships. This form is submitted by electronic means of remote transmission, and the option can be made for one or more entities benefitting from the sponsorship. With some exceptions provided in the Order No. 3562/2024, the beneficiaries of the amounts redirected from profit tax must be registered on the payment date in the Register of religious entities/units for which tax deductions are granted.

Keywords

• sponsorship
• redirecting
• tax loan
• form 177
• profit tax payer
• order of the president of the national agency for fiscal administration no. 3562/2024