LEGAL, ACCOUNTING AND FISCAL ASPECTS CONCERNING SPONSORSHIP AND PATRONAGE

• Main Author: BENGESCU MARCELA
• Format: Article
• Language: English
• Published: Academica Brâncuşi 2018-06-01
• Series: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie
• Subjects: Sponsorship; patronage; agreement; profit tax; microenterprise income tax; income tax; VAT.
• Online Access: http://www.utgjiu.ro/revista/ec/pdf/2018-03/31_Bengescu.pdf

In this paper I presented the result of the specialised doctrine study, but also that of the study of the legislation that regulates sponsorship and patronage. The object of sponsorship and patronage is to freely grant financial means or material goods. Sponsorship is based on a written agreement, while patronage is based on an authenticated contract. Sponsorship beneficiaries can be natural persons and non-profit legal entities. Sponsorship and patronage agreements are concluded in compliance with Law no. 32/1994 on sponsorship. Taxpayers who are sponsors or patrons are entitled to deduce, from their profit tax or from their microenterprise income tax, the sponsorship, patronage and private scholarship expenses, in compliance with the Fiscal Code and the Norms for the application of the Fiscal Code. Self-employed persons, taxed based on the selfemployment tax rate, may deduce, in the calculation of their tax, 5% of the basis calculated according to the Fiscal Code. When the sponsorship consists of granting goods for which VAT has been deduced and the taxpayer registered for VAT purposes has deposited the annual sponsorship ceiling, VAT is collected for the amount that exceeds that ceiling. For the application of the rules detached from the tax legislation, I included in the paper case studies inspired from the activity of taxpayers in Romania.