Redirecting the profit tax for sponsorship and/or acts of patronage: ANAF Order no. 3562/2024

The takeaway 

Order of the President of the National Tax Administration Agency no. 3562/2024 (OPANAF no. 3562/2024) approved the procedure regarding the redirection of the profit tax for sponsorship and/or acts of patronage for the profit tax due for the fiscal year 2024 or an amended fiscal year starting in 2024. For the fiscal years up to and including 2023, the redirection of the profit tax is carried out according to OPANAF no. 1769/2022. 

In detail 

OPANAF no. 3562/2022 approved the rules for redirecting the profit tax until the legal deadlines for submitting the annual profit tax return. 

The amount of the profit tax or the profit tax difference that can be redirected is calculated by subtracting it from the minimum amount established, according to art. 25 para. (4) lit. i) of the Fiscal Code, of the amounts representing sponsorship and/or patronage granted to beneficiary entities in the year for which the annual profit tax return was submitted, and of the carried forward amounts entered in form 101 ‘Profit tax declaration’ of the respective year. 

In situations where profit tax is due at the level of the minimum turnover tax (IMCA), taxpayers cannot order the redirection of the profit tax established at the level of the IMCA. 

To establish the profit tax limit, the deduction from it will also be taken into account of the amounts related to the tax credit and the exempt/reduced profit tax, according to OPANAF no. 3,386/2016 for the approval of the model and content of forms 101 ‘Profit tax declaration’ and 120 ‘Excise tax return’. 

According to the procedure, the beneficiary entities of the sponsorship can be:

• non-profit legal entities, religious groups, and the United Nations Children’s Fund; 

• international organization that carry out their activities according to the provisions of special agreements to which Romania is a party; 

• the beneficiaries provided for by Law no. 32/1994 regarding sponsorship and the Libraries Law no. 334/2002. 

The time frame for resolving requests regarding the redirection of the profit tax is 45 days as of the date of submission, but no later than 45 days as of the date of expiry of the legal term for exercising the redirection option. 

The option to redirect profit tax is exercised through form 177 ‘Request for redirection of profit tax’ for one or more entities. In the case of taxpayers which are members of a tax group, redirection can only be ordered by the group’s responsible legal entity. 

OPANAF no. 3562/2024 also provides for the procedure for resolving tax redirection requests along with the model and instructions for completing the related forms. 

Source: [Order of the President of the National Fiscal Administration Agency no. 3562/2024 for approval of the Procedure regarding the redirection of the profit tax, according to the law, for the performance of sponsorships and/or acts of patronage, as well as the model and content of some forms, published in the Official Gazette no. 643 dated 5 July 2024]