For companies paying corporate income tax

Sponsorship expenses are deducted from the profit tax, within the limit of 20% of it, but not more than 7.5‰ (per thousand) of the turnover. The difference of 80% of the tax due will be transferred to the state budget, according to the terms provided by the tax code. Sponsorships can be deducted quarterly (for example, sponsorships paid until March 30th can be deducted, within the limits specified above, from the payment tax on April 25th) or annually (sponsorships made during a fiscal year will be deducted, within the legal limits , from the payment tax on March 25 of the following year).

For PFA

PFAs may incur deductible sponsorship expenses up to 5% of net income, determined as the difference between gross income and deductible expenses other than sponsorship expenses.

For companies paying income tax

Commercial companies paying income tax that carry out sponsorships, according to the provisions of Law no. 32/1994, with subsequent amendments and additions, for the support of non-profit entities and cult units, which at the date of conclusion of the contract are entered in the Register of Cult Entities/Units for which tax deductions are granted according to art. 25 para. (4^1), reduce the related income tax amounts up to the value representing 20% of the income tax due for the quarter in which the respective expenses were recorded. The difference of 80% of the tax due will be transferred to the state budget, according to the terms provided by the tax code. For income tax, sponsorships can only be deducted quarterly (for example, sponsorships made up to March 30th can be deducted, within the limits specified above, from the tax payment on April 25th). For these companies, sponsorships cannot be done annually for all previous quarters.