The immediate impact on corporate income taxpayers is the increased fiscal responsibility regarding the use of the tax credit redirection mechanism toward nonprofit organizations, religious entities, and sponsorship or patronage projects. The procedure is regulated by [ANAF Order No. 3562/2024], in conjunction with the provisions of [Law No. 227/2015 regarding the Fiscal Code] and [Law No. 207/2015 regarding the Fiscal Procedure Code].
Thank you for reading this post, don't forget to subscribe!The right to redirect tax is exercised through Form 177, and the available amount is determined by reducing the fiscal ceiling by the sponsorships granted directly during the year and any amounts carried forward from previous periods. The amounts declared must correspond to the information reported in Form 101 concerning corporate income tax.
An important limitation applies to taxpayers subject to the minimum turnover tax. In such cases, the tax incentive related to redirection cannot be applied, and any submitted requests are rejected by the tax authority.
The eligibility of beneficiaries is an essential requirement. Nonprofit organizations and religious entities must be registered in the Register of Entities/Religious Units Eligible for Tax Deductions at the time the application is processed. Failure to meet this requirement may lead to the total or partial rejection of the redirection request.
Exceptions provided by the legislation concern certain international organizations, including UNICEF, as well as other entities operating under international agreements to which Romania is a party. The mechanism may also support patronage activities and cultural projects regulated by specific legislation.
From a procedural perspective, Form 177 must be submitted exclusively by electronic means. Companies may designate one or several beneficiaries, provided that the legal ceiling is respected. ANAF uses official notifications to indicate errors, inconsistencies, or issues regarding the beneficiaries’ bank accounts.
A critical aspect of the procedure concerns the settlement of tax liabilities. The tax authority verifies whether the corporate income tax for the relevant fiscal year has been fully paid. If the tax liabilities are not settled within 45 days from the due date, the application is rejected.
Companies may submit an amended Form 177 to correct material errors, but only within the deadlines established by tax legislation. In the case of notifications received through the Virtual Private Space (SPV), the correction period is 15 days from the date of notification.
For corporate income tax groups, the right to exercise the option belongs exclusively to the responsible legal entity that manages the group and files the consolidated tax return.
From a data protection perspective, ANAF provides beneficiaries with information regarding the amounts transferred; however, the taxpayer’s identification data may be disclosed only with the taxpayer’s explicit consent expressed through Form 177, in accordance with tax confidentiality rules and GDPR requirements.