Law for the approval of Emergency Ordinance no. 25/2018 regarding the amendment and completion of certain normative acts

Amendments and completions to Law 227/2015 regarding the Fiscal Code

1. Amendments and completions related to corporate income tax:

Regarding the tax credit applicable in case of sponsorship expenses:

– As of 1 April 2019, taxpayers subject to corporate income tax or micro-company tax are entitled to deduct from the corporate income tax/ micro-company tax due, the amounts related to the sponsorships made to non-profit legal entities and churches only insofar the beneficiaries of the sponsorship are registered in the Registry of non-profit entities/ churches approved by ANAF Order.

– In case of sponsorships carried out by micro-companies, the condition requiring non-profit entities, beneficiaries of the sponsorship, to be accredited for the social services provided with at least one licensed social service was eliminated.

– According to the law, the Registry of non-profit entities/ churches which will further be organised by ANAF, will only include entities that cumulatively meet the following conditions:

• carry out activities for which they have been incorporated;
• have fulfilled their tax reporting obligations and have no outstanding tax liabilities older than 90 days;
• have submitted their annual financial statements;
• have not been declared inactive taxpayers.