Redirects 20% of the profit tax due to the state to the Black Clinic
The company can direct 20% of the profit tax due to the state. Non-bureaucratic, no cost, in 3 easy steps.
Help at no cost:
- 1. Download sponsorship contract
- 2. Fill it in with the company data and send it to the address email@example.com
- 3. We print it in 2 copies, sign it, stamp it and send it by mail to the address indicated.
How is the amount calculated?
The amount that can be redirected from the tax for the entire year 2014 is calculated as follows:
-the company will estimate its profit for the fiscal year 2014 (starting from the tax calculated for the first 3 quarters and from the tax estimate for the 4th quarter) as well as the turnover of this year.
The amount, if it falls within the limits provided in the fiscal code (20% of the profit tax, maximum 3 ‰ (per thousand) of the turnover), is DEDUCTED FROM THE TAX.
The difference from the tax due will be transferred to the state budget, at the deadline provided by law (January 25, 2015). Sponsorship can also be done quarterly and is deducted from its profit tax, if the payment of the sponsored amount is made during that quarter.
Why isn't this type of sponsorship taxed?
Although it is a non-deductible expense, 16% TAX IS NOT APPLIED TO THE SPONSORSHIP. THE SPONSORSHIP IS TOTALLY DEDUCTABLE FROM THE TAX IF IT FALLS WITHIN THE LIMITS IMPOSED BY THE FISCAL CODE (not to be higher than 3 ‰ (thousand) of the CA and of 20% of the tax).
What is the distribution of the profit tax of any company?
Extract from the fiscal code Title 2, Chap. II, article 21, paragraph (4), letter p) “Taxpayers who perform sponsorships and / or acts of patronage, according to the provisions of Law no. 32/1994 on sponsorship, with subsequent amendments, and of the Law on Libraries no. 334/2002, republished, with the subsequent amendments and completions, as well as those that grant private scholarships, according to the law, deduct from the profit tax due the related amounts, if the total of these expenses cumulatively meets the following conditions:
-It is within the limit of 3 per thousand of turnover;.
-It does not exceed more than 20% of the profit tax due.
-Reflection in accounting of sponsorship operations by granting cash or bank transfer.