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Setting the amounts to support ONGs and churches – D230 in 2023

According to the regulations of the Tax Code, as amended and supplemented, taxpayers can dispose of the destination of the amount representing up to 3.5% of the annual tax due to support non-profit entities that are established and operate under the law and units of worship, as well as for granting private scholarships, according to the law.

 

The option can be exercised for one or more entities, up to a limit of 3.5% of income tax.

 

Depending on the nature of the income, the option is exercised by completing and submitting the following forms, as appropriate, to the competent central tax authority :

  • “Single declaration on income tax and social contributions payable by individuals”;

  • 230 “Request for the allocation of the amount representing up to 3.5% of the annual tax due”.

 

Non-profit entities/units of worship benefit from the amounts representing up to 3.5% of the tax due on the annual net taxable income/taxable net profit if at the time of their payment by the tax authority they are included in the Register of entities/units of worship for which tax deductions are granted.

 

Form 230 can be completed and submitted by individuals who earn income from Romania:

 

  • income from wages and salaries,

  • income from pensions;

  • income from self-employed activities taxed on the basis of income norm;

  • income from agricultural activities taxed on the basis of income norm;

  • income from self-employed activities based on sports activity contracts, for which tax is withheld at source;

  • income from intellectual property rights, other than those for which the net income is determined under the real system;

  • income from the transfer of the use of goods for which the net income is determined on the basis of income rules and income from the transfer of the use of goods for which the net income is determined on the basis of flat rates of expenditure.

 

Establishing the basis for calculating the amount representing up to 3.5% of the annual tax due: flat rates of expenditure.

According to the legal provisions, the specialized department shall establish the basis for calculating the amount representing up to 3.5% of the annual tax due for the support of non-profit entities/units of worship, as well as for the granting of private scholarships, based on the data from the tax records, taking into account the following, as appropriate:

 

a) the annual tax on income from salaries and assimilated to salaries from form 112 “Declaration on the obligations to pay social security contributions, income tax and nominal record of insured persons” and/or form 224 “Declaration on income in the form of salaries and assimilated to salaries from abroad obtained by individuals carrying out activities in Romania”;

b) the annual tax on income from intellectual property rights or from self-employed activities made on the basis of sports activity contracts from form 112 “Declaration on the obligations to pay social security contributions, income tax and nominal record of insured persons” or from the “Single declaration on income tax and social security contributions due by individuals”;

c) annual tax on pension income from form 205 “Information return on withholding tax and investment gains/losses, by income recipient”;

d) the tax due on the annual net taxable income/gain from Romania from the “Single tax return on income tax and social contributions due by individuals”;

e) the annual tax due in Romania on income earned abroad, after deduction of the tax credit, from the “Single tax return on income tax and social contributions due by individuals”.

 

In the case of income from salaries and similar salaries, income from intellectual property rights or income from independent activities based on sports activity contracts, earned in Romania, the specialized department shall check the tax records, based on form 112 “Declaration on the obligations to pay social contributions, income tax and nominal record of insured persons”, if the taxpayer has opted with the employer/income payer for the calculation, withholding and payment by the employer/income payer of the amount representing up to 3.5% of the monthly tax due for the support of non-profit entities/cult units, as well as for the granting of private scholarships, according to the law.

In the event that, following the checks carried out, the tax authority finds that the individual has opted for the calculation, withholding and payment by the employer/income payer of the amount representing up to 3.5% of the monthly tax due, when the tax authority establishes the basis for the calculation of the amount representing up to 3.5% of the annual tax due for the support of non-profit entities/units of worship, as well as for the granting of private scholarships

Establishment of eligible expenditure on private scholarships:

In order to determine the eligible expenses for private scholarships, the specialised department checks the data entered by the taxpayers in the application as well as the documents submitted (e.g. contract concluded between the parties, payment documents) and, if errors are found or the documents submitted are not sufficient, notifies the taxpayers in order to clarify the situation.

The amount paid for the private scholarship is checked to see if it is within the legally allowed limit  and the allowed expenses for the private scholarship are determined accordingly:

– if the amount paid is higher than the legally admissible limit , the admissible expenses for private scholarships are set at the level of this limit ;

– where the amount paid is less than the legally admissible limit , the expenses allowed for private scholarships shall be set at the amount paid.

In the case of taxpayers who decide on the allocation of the amount representing up to 3.5% of the annual tax for the support of non-profit entities/units of worship and for the granting of private scholarships, in order to determine the expenses allowed for private scholarships, granted according to the law, the specialized department verifies whether the amount resulting from the application of the percentage of the tax entered in the application for the support of non-profit entities/units of worship, cumulated with the amount paid for the private scholarship exceeds the limit  allowed by law representing 3.5% of the annual tax due. In the event that the legally admissible limit  is exceeded, the total amount taken into account is limited to the level of this limit , with priority being given to the expenses incurred during the reporting year with the private scholarship.

The specialized department determines the expenses allowed with private scholarships, granted according to the law, on the basis of the documents submitted by the taxpayer, as well as the data existing in the tax records, and issues the decision on determining the expenses allowed with private scholarships (form 255).

 

Determination of the amounts to be transferred to support non-profit entities/units of worship:

In the case of taxpayers who have requested the transfer of an amount of tax to a single non-profit entity / unit of worship, the following shall be taken into account when determining the amount to be transferred:

a) if the taxpayer has not filled in the “Percentage of tax” in the application for support of a non-profit entity/faithful unit, the amount to be transferred shall be set at the level of the limit allowed by law;

b) in the case of taxpayers who have filled in the “Percentage of tax” section in their application for the support of a non-profit entity/faithful unit, the specialised department shall establish the amount to be paid to the beneficiary entity as follows:

  1.  
  2. – if the percentage entered in the application is higher than the limit  allowed by law, the amount to be paid is set at the level of this limit ;
  3. – where the percentage entered in the application is lower than the legally permitted limit , the amount to be paid shall be set at the level of the percentage entered in the application.
  4. In the case where taxpayers have requested the transfer of a tax amount to more than one non-profit entity/faith units, the requests will be considered in the chronological order of the registration at the tax office of the requests/exercise of the option, with priority being given to the requests submitted in the previous year by which the taxpayer has opted for the support of the beneficiary entities for a period of 2 years, as the case may be, with the mention that the total amount to be transferred may not exceed the limit provided by law.
  5.  
  6. In determining the amounts to be transferred, in the above situation, the following shall be taken into account:
  7.  
  8. a) if the “Percentage of the tax” has not been completed in the application, the total amount to be transferred shall be set at the level of the limit provided for by law;
  9.  
  10. b) if the “Percentage of the tax” has been filled in, the tax authority shall check whether the total amount of the percentages entered in the applications exceeds the limit provided for by law.
  11.  
  12. If the total amount of the percentages entered in the applications is less than the limit  allowed by law, the amounts to be paid to each non-profit entity/faithful unit are determined at the level of each amount resulting from the application of the percentages entered in the application.
  13. If the total amount of the percentages entered in the applications is higher than the limit  allowed by law, the total amount to be paid shall be set at the level of the limit  provided for by law. Only applications whose total percentages do not exceed the statutory limit  will be considered in chronological order.
  14. In the case of taxpayers who have requested in the application submitted in 2020 the distribution of the amount to the beneficiary entity for a period of 2 years, the specialized department will establish the amount to be transferred at the level of the limit  allowed by law.
  15. The disbursement of the amounts representing up to 3.5% of the annual tax for the support of non-profit entities/units of worship shall be made within 90 days from the date of submission of the request, but no later than 90 days from the date of expiry of the legal deadline for exercising the option, according to the law.
  16. Before sending the receipt to the treasury unit in order to transfer the amounts for the support of non-profit entities/units of worship, the specialized department has the obligation to verify if the beneficiary non-profit entity/unit of worship is included in the Register of entities/units of worship for which tax deductions are granted, according to the law. If the beneficiary entity does not meet this condition, the specialized department informs the taxpayer that the tax authority  cannot transfer the amount to the account of the non-profit entity/faith unit and the reason why it cannot transfer the amount.
  17. In order to transfer the sums for the support of non-profit entities/units of worship, the specialized department issues, with the help of the computer application, a statement, which is sent to the treasury unit, with the following information:
  18. – the number/date of the slip;
  19. – the name of the non-profit entity/faith unit;
  20. – the tax identification code of the non-profit entity/faith unit;
  21. – bank account symbol (IBAN);
  22. – amount.
  23.  
  24. The tax unit’s manager approves the draft with the mention “Good for payment” and sends it to the treasury unit at the latest within 80 days from the date of expiry of the legal term for exercising the option, according to the law.
  25.  
  26. Submitting D230:
  27. The legislation stipulates that form 230 must be filed on or before 25 May of the year following the year in which the income is earned. Therefore, for the year 2023, taxpayers will have to remit their income tax for the year 2022 by 25 May 2023.
  28. Form 230 “Request for the use of the amount representing up to 3.5% of the annual tax due”, together with the completed annexes, is submitted as follows:
  29.  
  30. a) through the Virtual Private Space service, section Filing Single Declaration and other forms SPV-PF by accessing the link: https://formularespv- pf.anaf.ro/
  31. b) through the portal www.e-guvernare.ro, by using a qualified digital certificate;
  32. c) in paper format, at the registry office of the competent tax authority (in the area where the taxpayer is domiciled), individually;
  33. d) by post, individually, with acknowledgement of receipt;
  34. e) or the taxpayer may choose to submit the application to the non-profit entity/faithful unit, beneficiary of the amount. The non-profit entity/faithful unit that receives applications from taxpayers is obliged to submit to the competent tax authority only by electronic means of remote transmission, the form “Centralising statement of data contained in form 230”.
  35.  
  36. In this case, the original paper copies of the 230 requests are kept by the non-profit entities/units of worship and are made available to the tax authority at its request. Form 230 can be obtained free of charge from the offices of the tax authorities or by accessing the website of the National Tax Administration Agency, www.anaf.ro, as follows:
  37. a) section “Taxpayer assistance”, subsection “Declaration of tax obligations”, heading “All forms, with explanations”;
  38. b) Form 230 pdf smart form can be downloaded from the website www.anaf.ro by clicking on the link:
  39. https://static.anaf.ro/static/10/Anaf/Declaratii_R/230.html .
  40.  
  41. Legal basis:

  • – Fiscal Code (approved by Law no.227/2015, published in the Official Gazette no. 688 of 10.09.2015), as amended and supplemented;

  • – Methodological Norms for the application of the Tax Code (approved by HG no. 1/2016);

  • – ANAF Order 80/2022 on the amendment and completion of the Order of the President of the National Tax Administration Agency no. 15/2021 approving the Procedure for determining the amount representing up to 3.5% of the annual tax due for the support of non-profit entities that are established and operate in accordance with the law and units of worship, as well as for the granting of private scholarships, in accordance with the law, as well as the model and content of some forms;

  • anaf.ro