ANAF has regulated a procedure necessary for companies that, after sponsoring within the maximum limit to which they are entitled, find that they must reduce their profit tax or microenterprise income tax initially declared to the state and according to which they calculated the maximum limit of sponsorship. Basically, after the tax calculations are redone, they will also have to rectify the sponsorships they had originally made to harmonize with the new maximum values ​​to which they are entitled. Be careful, however, the companies will be obliged to pay interest and late payment penalties for the differences in amounts that they will declare to the state.

The new ANAF procedure, regulated by Order 1.090/2023, is one of regularization for situations in which taxpayers correct their business taxes downwards and are forced to recalculate accordingly and the maximum sponsorships they were entitled to, by redirecting a part from that tax declared and paid to the state.

In such cases, according to the procedure, the companies must pay to the state budget both the extra redirected difference (compared to the amounts that could be redirected as sponsorship at the initial calculation), as well as additional tax obligations – interests and penalties, calculated from the date of the sponsorship difference that was redirected in addition.

We remind you that corporate tax payers as well as income tax payers (micro-enterprises) can grant sponsorships to non-profit organizations on somewhat similar rules, subject to maximum ceilings allowed by law.

Concretely, according to the current fiscal rules, micro-enterprises that make sponsorships can reduce the amounts from the income tax of micro-enterprises up to the level of the value representing 20% ​​of the respective tax due for the quarter in which they registered the respective expenses, and the profit tax payers that make sponsorships can to reduce the amounts from the profit tax owed, at the level of the minimum value between the value calculated by applying 0.75% to the turnover or the value representing 20% ​​of the profit tax owed.

Being dependent on taxes declared and paid to the state budget, sponsorship limits also change when companies need to declare a new tax, lower than the one originally calculated.

Therefore, the new procedure sets out how to determine and regularize the difference in profit tax/micro enterprise income tax that has been redirected in addition to the amounts that can be redirected according to the new calculations.

To enable the procedure to be applied, the Order also amends form 100 by introducing two new items in this return – line 91 for Profit Tax Difference that was forwarded in addition and line 92 for Micro Business Income Tax Difference that was forwarded in addition.

The main technical elements of the procedure:

According to the information contained in ANAF Order no. 1.090/2023, the procedure is applied by taxpayers paying profit tax/income tax of micro-enterprises who cumulatively meet the following two conditions:

• ordered the redirection of some amounts from the profit tax/income tax of micro-enterprises for sponsoring and/or acts of patronage or the granting of private scholarships, according to art. 42 and art. 56 of the Fiscal Code;
• rectified the profit tax/microenterprise income tax owed for the year for which the redirection was ordered, in order to reduce it.

In applying the procedure, taxpayers paying profit tax/microenterprise income tax will have to determine:

• the amount of the tax or the tax difference that can be redirected taking into account the amount of the profit tax/microenterprise income tax due reduced, established following the rectification;
• the difference in corporate tax/microenterprise income tax that was redirected in excess of the amount that can be redirected.

Article published in TaxMagazine