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Romania: Amendments to the Sponsorship Tax Credit Procedure Starting in 2022

Romania: Amendments to the Sponsorship Tax Credit Procedure Starting in 2022

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Law no. 322/2021 published in the Romanian Official Gazette on 30 December 2021 has brought changes to the procedure for claiming tax credit for sponsorship expenses starting with 1 January 2022, as follows:

  • Starting with FY22 (or FY22/23 as applicable), taxpayers may claim tax credit for their sponsorship expenses only if the amount of said tax credit, following the deduction of the amounts of the corresponding tax credit carried forward from previous years, is positive.
  • The corresponding tax credit which is not used up against payable profit or against payable micro-company tax, as applicable, is to be carried forward no later than 2028 only if it relates to sponsorships performed before 1 January 2022, according to the regulations in force at the date of the sponsorship.
  • If the value of the tax credit for sponsorship expenses, less the amounts carried forward from previous years, as the case may be, has not been fully used up, taxpayers may redirect the profit tax, up to the amount thus calculated, for sponsorships, within a maximum of six months from submitting their annual profit tax return.
  • The rule above applies mutatis mutandis to taxpayers that are subject to the micro-company tax regime. 
  • Additional instructions are expected from the President of ANAF to clarify the application of the above rules. More details will follow.

By Carmen Mazilu, Associate, Noerr

Romanian Knowledge Partner

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

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