Companies’ interest in social responsibility objectives, which has been increasing lately, is supported by fiscal provisions that can be used to make larger contributions by sponsoring social causes.
Unlike previous years, now companies can sponsor not only directly to the beneficiaries, but also by redirecting a part of the profit tax or the income of micro-enterprises by applying to ANAF.
The main advantages of redirection are the follows:
The annual thresholds provided by the fiscal legislation for granting sponsorships, either directly or through redirection, are the follows:
The redirection can only be done within the above limits, from which the direct sponsorships granted in the current year and those carried over from previous years are subtracted.
By implementing the redirection mechanism, the possibility of carrying over the direct sponsorships carried out, if they exceed the above-mentioned limits, was eliminated. Only the sponsorships granted until 2021 and unused can be carried over until 2028.
Documentation of the sponsorship by signing a contract according to Law 32/1994 remains mandatory, both for the amounts granted directly and through the redirections.
The redirection procedure is the one provided by Order 1679/2022, namely by submitting form D177 within 6 months after the submitting deadline of the annual declaration 101 for profit taxpayers, respectively 6 months after the deadline for submitting the tax declaration on the income related to the micro-enterprises for the 4th quarter. The treasury transfers the amounts within 45 days after submitting the D177 form.