Do micro-enterprises still get a tax benefit for sponsoring an NGO?
It is the question most small sponsors ask, and the answer explains why many organisations lost their 2,000–5,000 lei sponsors without understanding why. The benefit no longer exists, and the organisation needs to know what to say.
Short answer
- No: micro-enterprises no longer get a tax credit for sponsorship.
- The rule letting them deduct 20% of the micro-enterprise income tax was repealed as of 2024.
- A micro-enterprise can still sponsor, but with no fiscal benefit at all.
- The sponsorship tax credit remains only for companies paying profit tax.
- For the NGO, the amount received is non-taxable income regardless of the sponsor tax regime.
What changed in the law
- Until 2023, a micro-enterprise could deduct sponsored amounts from its tax due, up to 20% of the micro-enterprise income tax.
- That rule was repealed as of 2024, so a micro-enterprise sponsorship no longer reduces its tax.
- The tax credit in Fiscal Code art. 25 para. (4) letter i) applies only to profit-tax payers.
- For them, the deduction is the lower of 0.75% of turnover and 20% of the profit tax due.
- The informative return 107 is filed from 2025 only by profit-tax payers, so not by micro-enterprises.
Practical examples
- A micro-enterprise with 5,000 lei of tax due would have deducted, under the rules up to 2023, at most 1,000 lei (20% of 5,000 lei); since 2024 it deducts 0 lei.
- A micro sponsor giving 3,000 lei bears the full 3,000 lei: it recovers nothing from its tax.
- A profit-tax-paying company with a turnover of 1,000,000 lei and 25,000 lei of tax: 0.75% = 7,500 lei, 20% = 5,000 lei, so it deducts 5,000 lei.
- The same 5,000 lei effectively costs 0 lei for a profit-tax payer with enough headroom, and 5,000 lei for a micro-enterprise.
What to tell a micro-enterprise sponsor
- Tell them straight that the benefit was repealed as of 2024, so they do not discover it themselves at year end.
- Explain that they can still sponsor, but the amount is a full cost for the company.
- If the company moves to profit tax, the fiscal benefit becomes available again under that regime.
- Offer them real visibility in connection with the sponsored activity, because their benefit is no longer fiscal.
Common mistakes
- The organisation promises a micro sponsor a 20% tax deduction, a promise that no longer holds since 2024.
- Old fundraising materials are used, still presenting the micro-enterprise benefit.
- The sponsor tax regime is not recorded, and the same pitch is sent to everyone.
- A 7-year carry-forward of the unused amount is expected, although it was repealed, and recovery goes through form 177.
How 4ong helps
- Records the tax regime on each sponsor record, so you never promise a benefit that does not exist.
- Separates profit-tax sponsors from micro ones, for fundraising campaigns with different arguments.
- Tracks the campaign target and progress, so you immediately see how much you lost from the small-sponsor segment.
- Offers small sponsors a move to recurring monthly giving, easier to sustain without a fiscal benefit.