LEGE no. 32 32 of 19 May 1994 (* updated *) on sponsorship ((updated until 3 April 2007 *)
ISSUER
PARLIAMENT
---------------- *) The initial text was published in the OFFICIAL GAZETTE no. 129 129 of 25 May 1994. This is the updated form of S.C. "Territorial Center of Electronic Computing" S.A. Piatra Neamt until April 3, 2007, with the modifications and additions made by: LAW no. 105 105 of 24 June 1997 repealed by EMERGENCY ORDINANCE no. 13 13 of 26 January 2001 ; ORDINANCE no. 36 36 of 30 January 1998 ; EMERGENCY ORDINANCE no. 127 127 of 10 September 1999 ; LAW no. 204 204 of 20 April 2001 ; LAW no. 576 576 of 22 October 2001 ; LAW no. 414 414 of 26 June 2002 ; LAW no. 394 394 of 30 October 2006 ; LAW no. 571 571 of 22 December 2003 . NOTE C. T. C. E S.A. Piatra-Neamt: **) For a complete view of the sponsorship regime, the following articles of the Fiscal Code with subsequent amendments and completions shall also be considered: Article 15, para. ((2), lit. e)-"(2) Non-profit organizations, trade union organizations and employers ' organizations are exempt from paying corporate tax for the following types of income: e) donations and money or goods received through sponsorship;" Art. 21, para. ((4), lit. p)-" (4) The following expenses are not deductible: p) sponsorship and/or mecenat expenses and expenses on private exchanges, granted according to the law; taxpayers who carry out sponsorships and/or acts of mecenat, according to the provisions Law no. 32/1994 on sponsorship, as amended, and the Law of Libraries no. 334/2002 , republished, with subsequent amendments and completions, as well as those who grant private scholarships, according to the law, decrease from the profit tax due the related amounts, if the total of these expenses cumulatively meets the following conditions: ... 1. is within the limit of 3 per thousand of the turnover; 2. does not exceed more than 20% of the income tax due. The respective limits also include the expenses of sponsoring public law libraries, for the purpose of construction of premises, facilities, procurement of information technology and specific documents, financing of training programs. continue the librarians, exchanges of specialists, specialization scholarships, participation in international congresses; " Art. 42, lit. f)-" In the meaning of income tax, the following incomes are not taxable: f) the amounts or goods received in the form of sponsorship or mecenat; " ... Art. 48, para. ((3), lit. d)-"Not considered gross income: d) amounts or goods received in the form of sponsorships, mecenat or donations." Art. 48, para. ((5), lit. a)-" The following expenses are limited deductible: a) sponsorship expenses, mecenat, as well as for the granting of private scholarships, carried out according to the law, within the limit of a rate of 5% of the calculation base determined according to par. ((6); ' Art. 128, para. ((8), lit. f)-" It does not constitute supply of goods, in the sense of ((1): f) the granting of goods of small value, free of charge, within the framework of sponsorship actions, of mecenat, of protocol/representation, as well as other destinations provided by law, under the conditions established by norms. " ... Art. 129, para. ((5) lit. a)-" It does not constitute the provision of services made with payment: a) the use of goods resulting from the economic activity of the taxable person, as part of a service provision made free of charge, within the framework of sponsorship, mecenat or protocol actions, as well as for other destinations provided by law, under the conditions established by rules; " ... Prior to these provisions of the Fiscal Code the taxation regime in the matter of sponsorship was also provided in LAW no. 414 414 of 26 June 2002 , published in MONITORUL OFFICIAL no. 456 456 of 27 June 2002 repealed by LAW no. 571 571 of 22 December 2003 . The Romanian Parliament adopts this law + Article 1 ((1) Sponsorship is the legal act by which two persons agree on the transfer of ownership of material goods or financial means for the support of non-profit activities carried out by one of the parties, referred to as the sponsor. ... (2) The sponsorship contract shall be concluded in written form, specifying the object, value and duration of the sponsorship, as well as the rights and obligations of the parties. ... (3) The mechanism is an act of liberality by which a natural or legal person, called mecena, transfers, without obligation of direct or indirect counterpart, his or her ownership of material goods or financial means to a natural person, as a philanthropic activity with a humanitarian character, for carrying out activities in the fields of: cultural, artistic, medical-sanitary or scientific-fundamental and applied research. ... (4) The act of mecenat shall be concluded in authentic form in which the object, duration and value thereof shall be specified. ... (5) In the case of sponsorship or mecenate consisting of material goods, they will be evaluated, by the legal act concluded, at their real value from the moment of handover to the beneficiary. ... ------------------- Article 1 has been amended by section 1. 1 1 of the single article of LAW no. 204 204 of 20 April 2001 , published in MONITORUL OFFICIAL no. 363 363 of 5 July 2001. + Article 2 Any natural or legal person in Romania or abroad who performs a sponsorship under the law is considered a sponsor. + Article 3 (1) Natural or legal persons in Romania may not perform sponsorship or mecenat activities from sources obtained from the budget. ... (2) Public institutions and authorities, commercial companies with majority state capital and autonomous regions may not carry out sponsorship activities having as beneficiaries individuals and family associations operating according to Law no. 300/2004 ... concerning the authorisation of natural persons and family associations which carry out economic activities independently, as well as private companies with private capital. -------------- Alin. ((2) art. 3 3 was introduced by the single article of LAW no. 394 394 of 30 October 2006 , published in MONITORUL OFFICIAL no. 892 892 of 2 November 2006. -------------- Art. 3 (only with para. 1 1 initial) was amended by section 4.2. 2 2 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. + Article 4 (1) May be a beneficiary of sponsorship: ... a) any non-profit legal person, who carries out in Romania or is to carry out an activity in the fields of: cultural, artistic, educational, educational, scientific-fundamental and applied research, humanitarian, religious, philanthropic, sport, protection of human rights, medical-health, social assistance and services, environmental, social and community protection, representation of professional associations, as well as maintenance, restoration, conservation and enhancement of historical monuments; ... ----------------- Letter a) a par. ((1) art. 4 4 has been amended by section 4.2 2 2 of the single article of LAW no. 204 204 of 20 April 2001 , published OFFICIAL GAZETTE no. 363 363 of 5 July 2001. b) public institutions and authorities, including the specialized bodies of public administration, for the activities referred to in lett. a); ... c) may also be sponsored, under the conditions of this law, broadcasts or programs of television or broadcasting bodies, as well as books or publications from the fields defined in lett. a); ... d) any natural person residing in Romania whose activity in one of the fields referred to in lett. a) is recognized by a non-profit legal person or by a public institution operating in the field for which sponsorship is requested. ... ----------------- Letter d) a par. ((1) art. 4 4 has been amended by section 4.2 3 3 of the single article of LAW no. 204 204 of 20 April 2001 , published OFFICIAL GAZETTE no. 363 363 of 5 July 2001. (2) It may be a beneficiary of the mecenate any natural person residing in Romania, without the obligation to be recognized by a non-profit legal person or by a public institution, which requires support in the fields of provided in art. 1 1 para. ((3). ... -------------------- Alin. ((2) art. 4 4 has been amended by section 4 4 of the single article of LAW no. 204 204 of 20 April 2001 , published OFFICIAL GAZETTE no. 363 363 of 5 July 2001. -------------------- Article 4 has been amended by section 4. 3 3 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. + Article 5 (1) The sponsor or the beneficiary shall be entitled to inform the public of sponsorship by promoting the name, brand or image of the sponsor. ... (2) The sponsor or the beneficiary is obliged to inform the public of sponsorship in a way that does not harm, directly or indirectly, the sponsored activity, the good morals or public order and peace. ... (3) The names of publications, titles of books and broadcasts of sponsored radio and television shall be announced as such. ... (4) The notices will be formulated in such a way as to clear the sponsorship action and will be brought to the public's attention, free of charge, by the beneficiary of the sponsorship. ... (5) In the framework of sponsorship or mecenat activities, it shall be prohibited for the sponsor, mecena or the beneficiary to carry out commercial, prior, concurrent or subsequent commercial advertising or advertising in favour of them or other persons. ... -------------------- Article 5 has been amended by section 6.6. 4 4 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. + Article 6 The facilities provided for in this Law shall not be granted if: a) mutual sponsorship between natural or legal persons; ... b) sponsorship made by relatives or afini up to the fourth degree inclusive; ... c) sponsorship of a non-profit legal person by another legal person who directs or directly controls the sponsored legal person. ... -------------------- Article 6 has been amended by section 6. 5 5 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. + Article 7 Art. 6 shall also apply to natural or legal persons carrying out acts of mecenat. -------------------- Article 7 has been amended by section 7. 6 6 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. + Article 8 ----------------- *) Unenforceable modification. See the NOTA C.T.C.E. at the end of Article 8. ----------------- *) Unenforceable modification. See the NOTA C.T.C.E. at the end of Article 8. (1) Romanian natural or legal persons, who carry out sponsorships in the fields provided in art. 4, benefit from the reduction of the taxable base with the equivalent of sponsorships, but not more than 5% of the taxable base. ... ----------------- Alin. ((1) of art. 8 8 has been amended by art. 2 of EMERGENCY ORDINANCE no. 127 127 of 10 September 1999 , published in MONITORUL OFFICIAL no. 455 455 of 20 September 1999. (2) The Romanian natural and legal persons, who perform acts of mecenat under the conditions of this law, benefit from the reduction of the taxable base with their equivalent, but not more than 5% of the taxable base. ... ----------------- Alin. ((2) of art. 8 8 has been amended by art. 2 of EMERGENCY ORDINANCE no. 127 127 of 10 September 1999 , published in MONITORUL OFFICIAL no. 455 455 of 20 September 1999. (3) The totality of discounts applied to the taxable base for sponsorships made according to par. ((1), cumulated with those related to the mechenate acts, may not exceed 5% of its income from taxable profit, as the case may be. ... ----------------- Alin. ((3) of art. 8 8 has been amended by art. 2 of EMERGENCY ORDINANCE no. 127 127 of 10 September 1999 , published in MONITORUL OFFICIAL no. 455 455 of 20 September 1999. (4) Foreign natural or legal persons, who owe the Romanian state, according to the legislation in force, a tax for an income realized in Romania and who carry out sponsorships or acts of mecenat, also benefit from the reduction of the base taxable with the equivalent in lei of sponsorship or mecenat act, calculated at the exchange rate of the day, at the date of the transfer of ownership, in the same quotas applicable to Romanian natural or legal persons, according to Previous paragraphs. ... -------------------- Article 8 has been amended by section 6.6. 7 7 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. -------------------- *) NOTE C.T.C.E. S.A. Piatra-Neamt: LAW no. 204 204 of 20 April 2001 , published in MONITORUL OFFICIAL no. 363 of 5 July 2001 approved with amendments ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 of 30 January 1998, without regard to the fact that in the meantime, para. ((1), (2) and (3) of art. 8 were amended by EMERGENCY ORDINANCE no. 127 127 of 10 September 1999 , published in MONITORUL OFFICIAL no. 455 455 of 20 September 1999. Amendments to which point 5 5 and 6 of the single article of LAW no. 204 204 of 20 April 2001 , published in MONITORUL OFFICIAL no. 363 of July 5, 2001 determines them on art. 8 refers to lit. a) and c) of par. ((1) of this article in the regulation ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. Art. II of LAW no. 576 576 of 22 October 2001 , published in MONITORUL OFFICIAL no. 679 679 of 26 October 2001 provided for the repeal of point 5 5 and 6 of the single article of LAW no. 204 204 of 20 April 2001 , published in MONITORUL OFFICIAL no. 363 363 of 5 July 2001 amending lit. a) and c) of par. ((1) of art. 8. + Article 9 (1) Amounts received from sponsorship or mecenat are exempt from income tax. ... (2) The same provision applies to material goods received through sponsorship or mecenat, according to this law. ... -------------------- Article 9 has been amended by section 6.6. 8 8 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. + Article 10 (1) Do not benefit from the facilities provided in this law the sponsor which, directly or indirectly, aims to direct the activity of the beneficiary. ... (2) Provisions of para. (1) does not remove the right of the parties to conclude, according to the law, legal acts affected by the task, if they do not direct or condition the activity of the beneficiary. ... -------------------- Article 10 has been amended by section 10. 9 9 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. + Article 11 Appeals regarding the granting or non-granting of the facilities provided for in this Law shall be settled according Law no. 105/1997 * *) for the resolution of objections, appeals and complaints on the amounts found and applied by the acts of control or taxation of the bodies of the Ministry of Finance. -------------------- Article 11 has been amended by section 1. 10 10 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. -------------------- * *) Law no. 105/1997 has been repealed by art. 16 of EMERGENCY ORDINANCE no. 13 13 of 26 January 2001 , published in MONITORUL OFFICIAL no. 62 62 of 6 February 2001. EMERGENCY ORDINANCE no. 13 13 of 26 January 2001 , published in MONITORUL OFFICIAL no. 62 62 of 6 February 2001 was repealed by ORDINANCE no. 92 92 of 24 December 2003 , published in MONITORUL OFFICIAL no. 941 941 of 29 December 2003. ----------------------- Article 12 has been repealed by art. 12 of LAW no. 105 105 of 24 June 1997 , published in MONITORUL OFFICIAL no. 136 136 of 30 June 1997. ----------------------- Article 13 was repealed by art. 12 of LAW no. 105 105 of 24 June 1997 , published in MONITORUL OFFICIAL no. 136 136 of 30 June 1997. -------------------- Article 14 has been repealed by point (a). 11 11 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. -------------------- Article 15 has been repealed by point (a). 11 11 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. -------------------- Article 16 has been repealed by point (a) 11 11 of art. I of ORDINANCE no. 36 36 of 30 January 1998 , published in MONITORUL OFFICIAL no. 43 43 of 30 January 1998. + Article 17 The provisions of this law shall enter into force with the first of the month following its publication in the Official Gazette of Romania. + Article 18 On the date of entry into force of this Law any contrary provisions shall be repealed. This law was adopted by the Chamber of Deputies and the Senate in the joint meeting of May 5, 1994, in compliance with the provisions of 74 74 para. ((2) and art. 76 76 para. (2) of the Romanian Constitution. CHAMBER OF DEPUTIES PRESIDENT ADRIAN NASTASE SENATE PRESIDENT prof. univ. dr. OLIVIU GHERMAN -----------------------------
