NGO sponsorship has been affected by the fiscal changes introduced by the government starting this year, in addition to the fact that micro-enterprises are no longer able to deduct income tax and the PFA can no longer divert the 3.5% in the area of ​​companies paying income tax. profit, the matter was complicated by two forms: 107 and 177. HotNews.ro wrote about form 107 “Information declaration regarding the beneficiaries of goods/services/sponsorship/patronage” on January 23.

In the meantime, ANAF has also prepared a draft that involves the completion and submission of Form 177 “Income Tax Redirection Application” and “Income Tax Redirection Notice”.

“Form 177 is used beginning with the 2024 income tax redirection/amended fiscal year beginning in 2024, with the first filing deadline in 2025,” the agency’s draft said.

Spending on private scholarships no longer reduces income tax, fiscal consultant Adrian Benza said in an analysis earlier this year.

According to him, the cost of goods and services provided by UNICEF is added to the cost of sponsorship and reduces the income tax of 0.75% of the turnover, but does not exceed the 20% income tax. Both expenses are initially not deductible when calculating income tax.

It remains possible to redirect the amount of sponsorship or patronage expenses up to the maximum amount provided by law, if the income tax payer submits a redirection form.

Micro-enterprises are no longer able to deduct income tax

“From 2024, I can no longer sponsor in such a way that I have the fiscal opportunity to deduct 20% interest from the tax due. I can still do it, but without any tax benefits,” says tax consultant Cornell Grama, who analyzed the ruling.

According to GEO, the last fiscal year in which sponsorship/scholarship amounts remaining to be carried forward are deducted from microenterprise income tax is fiscal year 2023.

PFA, self-employment in general, can no longer redirect 3.5%

Taxpayers with self-employment or other types of income can no longer remit the 3.5% annual tax, says Cornel Grama.

According to him, the opportunity remains only with income from wages and salaries.