Corporate tax/micro-sponsorship redirection

In the Official Gazette (Part I) no.923 of 21 September 2022, ANAF Order no.1679 was published to approve the Procedure for the redirection of corporate income tax/income tax on microenterprises, according to the law, for sponsorships and/or acts of patronage or granting of private scholarships, as well as the model and content of some forms.

General provisions:

According to the normative act, the payers of corporate income tax or microenterprise income tax, as the case may be, may order the redirection of certain amounts of tax due, according to the law, within 6 months from the legal deadline for filing the annual corporate income tax return, respectively the microenterprise income tax return for the fourth quarter.

The amount of corporate income tax or corporate income tax difference that can be redirected is calculated by subtracting the minimum amount established, according to article 25 paragraph (4) letter i) of Law no.227 /2015 on the Tax Code, as amended and supplemented, of the amounts representing sponsorship and/or patronage, private scholarships, granted to the beneficiary entities in the year for which the annual income tax return was filed, according to Article 25 paragraph (4) letter i) and t), and the amounts carried forward, as entered in the form 101 “Income tax return” of the respective year.

For the determination of the corporate income tax limit provided for in Article 25 paragraph (4) letter i) point 2 of Law no. 227/2015 on the Tax Code, as amended and supplemented, it will be taken into account the deduction from it of the amounts related to the tax credit and the exempted/reduced corporate income tax, in accordance with the provisions of the Order of the President of the National Tax Administration Agency no. 3.386/2016 for the approval of the model and content of forms 101 “Corporate tax return” and 120 “Excise tax declaration”, with subsequent amendments and additions.

The amount of income tax on microenterprises or the amount of the difference in income tax on microenterprises that can be redirected is calculated by subtracting from the amount established, according to article 56 paragraph (11) of Law no. 227/2015 on the Fiscal Code, as amended and supplemented, calculated for the entire fiscal year, the amounts granted to the beneficiary entities in that year, according to article 56 paragraph (11), (15) and (22) of Law no. 227/2015 on the Fiscal Code, as amended and supplemented, and the amounts carried forward.

The obligation to pay the amount redirected from the corporate income tax, respectively from the income tax on microenterprises is incumbent on the competent tax authority.

Redirection of corporate income tax or microenterprise income tax for the sponsorship of non-profit legal entities, including religious units, may be made only if the beneficiary of the sponsorship is registered on the date of payment of the amount by the tax authority in the Register of entities/ religious units for which tax deductions are granted.