In Romania, companies subject to corporate income tax may support NGOs through two fiscal mechanisms: direct sponsorship and corporate tax redirection. Although both support the non-profit sector, they function differently and affect cash flow in distinct ways.
These provisions do not apply to microenterprise tax payers.
Direct Sponsorship
Sponsorship involves the transfer of funds, goods or services to an NGO based on a sponsorship agreement.
Although the expense is non-deductible, companies may reduce their corporate income tax within the following limits:
- 0.75% of turnover, and
- 20% of the corporate income tax due.
The beneficiary must be registered in the official ANAF NGO Register.
Companies must submit Form 107, and the deadline for year 2025 is June 25, 2026.
Corporate Income Tax Redirection
If the maximum deductible ceiling was not fully used, companies may redirect the remaining amount to an NGO by submitting Form 177 by the same deadline as the annual tax return.
In this case, ANAF transfers the funds directly to the NGO, without additional payment by the company.
Key Difference
- Sponsorship = direct payment by the company
- Redirection = payment made by ANAF