“Information Statement on Sponsorhip / Patronage / Private Scholarships”

In brief

The Ministry of Public Finance has issued an Order regarding the approval of the form for declaring information on sponsorship beneficiaries.

Failure to file the informative statement is sanctioned by a fine of RON 12,000 to RON 14,000 for medium and large taxpayers, and a fine of RON 2,000 to RON 3,500 for other taxpayers.

In detail

Who is required to submit Form 107?

Completing and submitting the statement is mandatory for taxpayers which sponsor and / or act as sponsors or grant private scholarships and are one of the following:

• Profit tax payers;

• Tax payers of a specific tax for some activities and also pay profit tax;

• Tax payers on micro-enterprise income.

Deadline for statement submission

Depending on the type of taxpayer, the deadline for submitting the statement is:

·        for quarterly tax payers - 25 March or the twenty-fifth of the third month following the end of the amended fiscal year;

·        for companies earning money from agriculture or for non-patrimonial organisations - 25 February or the twenty-fifth of the second month following the end of the amended fiscal year;;

·        for tax payers on micro-enterprise income - 25 January or the twenty-fifth of the month following the last quarter for which micro-enterprise income tax is due;

·        for legal persons which dissolve with liquidation during the tax year - by the date of filing the financial statements;  

·        for legal persons which dissolve without liquidation during the tax year - by the end of the taxable period.

How is the statement submitted?

The statement is submitted electronically. Where the declaration is corrected, the Amending Statement is drawn up on the same form, stating 'X' in the special space provided for that purpose.

Information required in the declaration

The informative statement has to include:

• Year / period for which the statement is being filed;

• Taxpayer’s identification data;

• Beneficiary data (tax ID / address / amount / reported amount / amount deducted);

• Identification data of the empowered person, if applicable.

Penalties

Failure to submit the informative statement is sanctioned by a fine of RON 12,000 to RON 14,000 for medium and large taxpayers, and a fine of RON 2,000 to RON 3,500 for other taxpayers.

Source: Ministry of Public Finance Order no. 1,825 / 2018 for the approval of the template and content of Form 107 "Information Statement on the beneficiaries of Sponsorship / Patronage / Private Scholarships" was published in the Official Monitor no. 646 / 25 July 2018.

The takeaway

Taxpayers required to submit the informative statement about the beneficiaries of Sponsorship / Patronage / Private Scholarships have to ensure that they have a clear record of the amounts awarded and obtain the necessary information from the beneficiaries.

Failure to submit the informative statement could result in fines of RON 12,000 to RON 14,000 for medium and large taxpayers.