Companies can redirect 20%
of their profit tax to an NGO
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How does it work?
According to the Romanian Fiscal Code (2004), companies can direct 20% of their profit tax towards an NGO, and the amount will be deducted from the total profit tax owned to the State. The value that can be deducted represents the minimum value of either:
1. 5‰ of their total turnover
2. 20 % of their profit tax.
How to obtain this fiscal advantage for your company?
The sponsorship will be made under a Sponsorship Contract and the company will send the money directly to the NGO, and not to the Fiscal Authorities. In order for the amount to be deducted, the sponsorship must meet the following requirements:
– the sponsorship is made to an NGO
– the amount does not exceed 5‰ of the total turnover or 20% of the total profit tax to be paid
– the sponsorship must be made until December 31 st to be taken into consideration for the current fiscal year.
– a sponsorship contract agreement is mandatory to be signed by both the Company and the NGO.
What is the advantage for my company?
The advantage of this type of donation is the fact that the companies have the liberty of choosing the destination of the sponsorship as they please, instead of giving that amount of money to the State which will allocate it according to their consideration.
It is a great way to support our NGO whithout having any additional expense and without affecting the net profit of your company.
Having such support from companies helps our Programs become more sustainable, help us plan for future development, and reach more children and families in need.