new rules for sponsorships

WHO

• Profit tax-paying companies

WHAT

• The updated Tax Code establishes that, in calculating the profit tax, the smallest value of the following two is tax deductible for sponsorships:
  • 0,75% of turnover (previously 0,5%)
  • 20% of profit tax

WHEN

• Important: in order to be deductible, the sponsorship must be paid before the end of the last month in the trimester
• If the sponsorship is higher than the deductibility threshold, the amount may be recovered from the profit tax owed in the following 7 years

HOW

• Sponsorship is a deductible expense if the places of worship / NGOs are registered with the Tax Agency ANAF in a special Register - introduced in April 2019 (details)

2019-08-19