The redirection of profit tax and microenterprise revenue tax for sponsorships, acts of patronage and private scholarships: ANAF Order no. 1679/2022

The takeaway

The president of the National Agency for Fiscal Administration Order no. 1679/2022(OPANAF) approved:

• the procedure for redirecting profit tax/microenterprise revenue tax for sponsorship, acts of patronage or the granting of private scholarships;
• the model and instructions for filling in form 177 “Application for redirection of profit tax/ microenterprise revenue tax”;
• model form “Notification regarding redirection of profit tax/microenterprise revenue tax”.

In detail

OPANAF no. 1679/2022 approved the rules for redirecting the profit tax/microenterprise revenue tax for sponsorship, acts of patronage or granting private scholarships. The redirection can be ordered by the payers of profit tax or microenterprise revenue tax within six months after the legal deadline for submitting the annual profit tax return or the microenterprise revenue tax return related to quarter IV, respectively.

For the purposes of this procedure, possible beneficiaries include:

• Non-profit legal entities.
• Religious organisations.
• The United Nations Children’s Fund (UNICEF) and any international organisation that conducts its activity according to the provisions of special agreements to which Romania is a party.
• Other beneficiaries provided for by Law no. 32/1994 regarding sponsorship, Libraries Law no. 334/2002, republished, and art. 25 para. (4) lit. c) of National Education Law no. 1/2011.
• Beneficiaries of private scholarships, according to the law.

However, the redirection of tax is carried out only if on the date of payment the beneficiary is listed in the Register of entities for which tax deductions are granted. UNICEF and the other international organisations described above do not need to be so registered. 

The profit tax that can be redirected is calculated by subtracting from the minimum value established according to the Fiscal Code the sponsorship, patronage and private scholarship amounts granted to the beneficiaries in the year for which the annual profit tax return was submitted, and the amounts carried forward, as they were entered in the declaration regarding the profit tax of the respective year.

The microenterprise revenue tax that can be redirected is calculated by subtracting from the amount established according to the Fiscal Code for the entire fiscal year the amounts granted to the beneficiary entities in that year and any amounts carried over.

The obligation to pay the redirected profit tax/microenterprise revenue tax amounts rests with the competent fiscal body.

To redirect tax to one or more entities, taxpayers have to submit form 177 “Application for redirection of profit tax/microenterprise revenue tax”. In the case of fiscal groups, redirection can only be ordered by the responsible legal entity.

The deadline for resolving requests is 45 days from their submission. For taxpayers with profit tax / microenterprise revenue tax debts, the 45-day period starts from the date those debts are cleared.

OPANAF no. 1679/2022 also provides for the procedure for resolving tax redirection requests, as well as the model and instructions for completing the related forms.

Source: [Order of the president of the National Tax Administration Agency no. 1,679/2022 for the approval of the Procedure regarding the redirection of the profit tax/tax on the income of micro-enterprises, according to the law, for the performance of sponsorships and/or acts of patronage or the granting of private scholarships, as well as the model and content of some forms, published in the Official Gazette no. 923 dated 21 September 2022]