Redirecting the profit/income tax related to sponsorships

According to a legislative proposal recently registered in the Senate, starting with 2022, the part of the profit tax, respectively of the income tax of micro-enterprises due by companies and by law, can be redirected at any time, within 7 consecutive years, for sponsorships of non-profit entities, public institutions or individuals working in education, research, health, etc.

More precisely, the mentioned legislative proposal envisages the amendment of the Fiscal Code in the sense that “starting with January 1, 2022, the unused amounts from the profit tax for sponsorships are carried forward for the next 7 consecutive years, the taxpayer being able to dispose of them at any time. during this period.”

The effective procedure would be established by order of the National Agency for Fiscal Administration.

Thus, as it appears in the explanatory memorandum of the project, these amounts would constitute a fund from which sponsorships could be granted, following that the companies regularize annually the amounts they have at their disposal.

According to the same document, sponsorships representing 20% of the profit tax due will be deducted from it, in the case of those made to non-profit legal entities, including cult units, provided that the latter are registered in the Register of cult entities / units. for which tax deductions are granted.

The remaining amounts, which have not been so reduced, will be carried forward for the next 7 consecutive years, and their recovery will be carried out “in the order of their registration, under the same conditions, at each term of payment of income tax.”

On the other hand, according to the legislative proposal registered in the Senate, in case of amounts not used for sponsorships from the micro income tax, they will be carried over, starting with January 1, 2022, in the next 28 consecutive quarters, the taxpayer may also , disposes of them at any time during the mentioned period.

Thus, according to this proposal, taxpayers will be offered a longer period, up to 7 years, to decide if they want to have the respective amounts to sponsor.