Collaboration Benefits
Team Building and Networking
- 1. Supports team-building initiatives and helps strengthen employee loyalty.
- 2. Helps position the company positively among employees by associating it with a set of values centred on environmental protection.
- 3. Provides opportunities to organise joint activities with business partners or connect with other companies supporting the “Adopt a Tree!” project.
Corporate Social Responsibility
Alongside internal efforts to reduce the negative environmental footprint of its business activities, a company can report progress against several performance indicators included in its corporate responsibility strategy (ESG KPIs). Environmental indicators cover the materials used, energy and water consumption, biodiversity, greenhouse gas emissions, discharges and waste, transport-related impacts, and investments in environmental protection.
Sponsorship and Taxation
The Sponsorship Law and the Romanian Tax Code allow companies subject to corporate income tax to sponsor NGOs and benefit from tax incentives, subject to certain conditions established by law. Sponsorship expenses are not tax-deductible, but they may qualify as a tax credit, reducing the corporate income tax payable by the full amount of the sponsorship. In practice, this tax credit mechanism allows the sponsor to direct the respective amount to a non-profit organisation instead of paying it as corporate income tax.
Since 2019, legal entities subject to corporate income tax and those subject to micro-enterprise revenue tax that make sponsorships have benefited from the following tax deductions:
- Corporate Income Taxpayers
For corporate income taxpayers that make sponsorships in accordance with Law No. 32/1994, as subsequently amended and supplemented, the 2019 Sponsorship Law applies. Although sponsorship expenses are non-deductible, the corresponding amounts may be deducted from the corporate income tax due, up to the lower of the following two amounts:
https://lege5.ro/Gratuit/he2dioi/legea-nr-32-1994-privind-sponsorizarea
https://lege5.ro/Gratuit/gmytmmbzgm2q/legea-nr-30-2019-pentru-aprobarea-ordonantei-de-urgenta-a-guvernului-nr-25-2018-privind-modificarea-si-completarea-unor-acte-normative-precum-si-pentru-aprobarea-unor-masuri-fiscal-bugetare
The amount calculated by applying 0.75% to the company’s turnover, in accordance with Law No. 156/2019, effective from 29 July 2019;
The amount representing 20% of the corporate income tax due.
2. Micro-Enterprise Revenue Taxpayers
Starting from 1 April 2019, micro-enterprises that make sponsorships in accordance with Law No. 32/1994 to support non-profit organisations and religious institutions may deduct the corresponding amounts from their micro-enterprise revenue tax, up to 20% of the tax due for the quarter in which the respective expenses were recorded.
Source: fiscalitatea.ro
