Redirecting the profit tax

Specifically, if the sponsorships performed during the fiscal year do not reach the maximum threshold established by the Romanian Fiscal Code (i.e. the minimum value between 0.75% of turnover and 20% of corporate income tax due) or no sponsorships have been performed, the taxpayer has the possibility to redirect the unused difference to eligible entities.

The deadline for submitting Form 177, ‘Request for Redirection of Corporate Income Tax’, coincides with the deadline for submitting the annual corporate income tax return.

Thus, for taxpayers using the calendar fiscal year, the deadline for submitting Form 177 is 25 June 2025, while for those using a different fiscal year, the deadline is the 25th day of the sixth month from the end of their fiscal year.

The process is carried out at the taxpayer's request, without an additional cost, and the actual payment to the beneficiary entities is made by the competent tax authority, on the basis of the submitted notification.

It is important to note that entities benefiting from sponsorship must be registered in a specific registry (available here), except in cases where taxpayers request that amounts be redirected to international organisations, such as UNICEF, which operate under international agreements to which Romania is a party.

Moreover, the taxpayer must conclude a written agreement with the beneficiary, which is drafted in line with the Romanian Sponsorship Law no. 32/1994 and the Romanian Fiscal Code.  

Please note that when the profit tax is due at the level of the minimum turnover tax (IMCA), taxpayers cannot redirect the corporate income tax assessed at the level of the minimum turnover tax.

Considering the above, our team of specialists can assist you in verifying the fulfillment of the necessary conditions for redirecting the corporate income tax, as well as in completing and submitting Form 177.

If the above is of interest to you, please do not hesitate to contact us below.