Romania: Tax update
The turnover limit for calculating the tax credit for sponsorships, patronage, and private scholarships increased from 0.5% to 0.75%. This amendment became effective on July 29, 2019, under Law 156/2019, which modified article 25, paragraph (4), section i) of Law 227/2015 (Romanian Fiscal Code).
Corporate income tax payers who provide sponsorships, patronage, or private scholarships can now deduct these amounts from their corporate income tax liability. The deduction is limited to the lesser of either 0.75% of turnover or 20% of the corporate income tax owed.
Law 156/2019 was published in the Official Gazette of Romania, issue number 625, dated July 26, 2019.