A New Fiscal Document to Declare Sponsorships in a Firm
Companies with profits above EUR 1 million in 2017 and registered as taxpayers in Romania must comply with the new requirements regarding the income tax. In this matter, according to the new Fiscal Code, companies need to submit a new tax declaration with details about the sponsorships offered or received, private scholarships (if any) and the acts of patronage. For the necessary information regarding the new policies of the Fiscal Code which matter in the accounting field for your business in Romania, we recommend you get in touch with our Romanian accountants.
Details about the new fiscal declaration
Sponsorships, scholarships or patronage acts may be part of the activities of companies with large profits in Romania. To legally register and declare such operations, the fiscal structures in Romania implemented a new informative statement which needs to be submitted by businesses with big incomes. This is an important document which needs to be provided to the local tax offices, in order to properly calculate and report the annual tax profit. Even though the deadline for submission of such declaration was in March for the previous year, the authorities have prolonged the period in this sense, in order to prepare the standard documents. If you need help when preparing the documents to declare the sponsorship in the firm, we invite you to address your inquiries to our team of accountants in Romania. As it is known, audits in Romania are mandatory, and our team of consultants can help you in these matters.
Why was such fiscal declaration necessary?
According to the Romanian government through the supervisory financial authorities, all sponsorships and charity acts must be declared at the time when all other fiscal declarations for tax purposes are recorded. This way, the authorities want to control the amount of money offered by companies, in order to deduct them from the income tax. From now on, this represents a legal contribution, according to the O.U.G. no. 25/2018.
Foreign business persons who need additional information about the new fiscal document to declare the sponsorship in a company can contact our accounting firm in Romania.