Tax Code and Law no. 32/1994 on sponsorship, with subsequent additions and amendments, provides taxpayer companies to direct up to 20% of the annual amount due to the state budget to non-governmental organizations. The amount offered as sponsorship deducted from the income tax may not exceed 0.75% of the turnover.
Tax Code, Title II, Chapter II, and Article 25, paragraph 4), Letter i)
“… taxpayers that are making sponsorships and / or acts of patronage, according to the provisions of Law no. 32/1994 on sponsorship, with the subsequent modifications and completions, and of the Law no. 334/2002, republished, as subsequently amended and supplemented, as well as those granting private scholarships, according to the law, shall deduct those amounts from the income tax that is due to the minimum value between the following:
- the amount calculated by applying 0.75% of the turnover; for situations where the applicable accounting regulations do not define the turnover indicator, this limit is determined according to the rules;
- the amount representing 20% of the income tax payable. Amounts that are not deducted from profit tax, under the provisions of this paragraph, shall be carried over the next seven consecutive years. Recovery of these amounts shall be made in the order in which they are recorded, under the same conditions, for each payout period.”