Redirect 20% of income tax
The Sponsorship Law and the Fiscal Code allow companies to offer sponsorship while taking advantage on some tax benefits, in certain circumstances provided by the law.
Sponsorship offered to non-profit organizations are deducted from the income / profit tax, within the limits provided by the Fiscal Code, only if the beneficiary is registered, at contract signing date, in the Register of the entities eligible for tax benefits.
The sponsorship expense is not tax deductible, but can represent a tax credit i.e. may reduce the income / profit tax with the amount of the sponsorship.
- Companies subject to profit tax, which offer sponsorship to non-profit organizations, public authorities, individuals, etc. for certain activities (e.g. culture, education, humanitarian or social purposes) take advantage of tax benefits in certain circumstances stipulated by the law. The sponsorship expense may reduce the profit tax up to the minimum between:
- 20% of payable profit tax
- 0,75% of the turnover
- Micro companies which offer sponsorship to non-profit organizations deduct the sponsorship expenses up to the limit of 20% of the income tax payable for the quarter when those expenses occurred.
Tax payers carrying sponsorship must fill the informative form regarding the sponsorship beneficiaries (Form 107) for the year when those expenses occurred.
The tax benefit given through the tax credit mechanism allows the sponsor to pay that amount to a non-profit organization and not into the income/ profit account. For the purpose of the profit / income tax calculation for a specific period, the sponsorship contract must be concluded (and payments should be done) within that period.
When the sponsorship expenses are higher than the tax credit allowances, the remaining difference will be carried forward in the next quarters, for a period of maximum 7 years. The recovery of these amounts for the purpose of credit tax will be done following the registration order.
The tax benefits will not be granted in the case of:
- Reciprocal sponsorship between individuals and legal entities
- Sponsorships done towards relatives, up to the 4th degree
- Sponsorship of a non-profit organization by a legal entity which directly manages or controls the beneficiary
The sponsor which directly or indirectly aims to drive / influence the activity of the beneficiary will not be eligible for the tax benefits provided by the Sponsorship law.
Redirect 3,5% of the income tax
Redirect 3,5% of the income tax through the annual tax returns, like 230 Form and the Single Tax form.
FILL IN THE 230 FORM TO SUPPORT CAUSES WHICH MATTER TO YOU!
The 230 Form must be submitted by individual persons who have realized salary or pension incomes in the previous year. Choose to direct 3,5% of the income tax to ASOCIATIA HOLFIN FILANTROPICA – CUI 42501210, IBAN RON RO21WBAN024596127282RO02, opened with INTESA SANPAOLO BANK.
FILL IN THE SINGLE TAX FORM TO SUPPORT CAUSES WHICH MATTER TO YOU!
If in the previous year you have realized income as authorized individual (PFA) or from rents, birth rights, intellectual rights or from liberal professions (doctor, lawyer, accountant, etc.) you should fill in the Single tax Form. Choose to direct 3,5% of the income tax to ASOCIATIA HOLFIN FILANTROPICA – CUI 42501210, IBAN RON RO21WBAN024596127282RO02, opened with INTESA SANPAOLO BANK.