For companies
Legally direct part of your corporate income tax towards sport
If your company pays corporate income tax, the amount granted through sponsorship can be deducted from the tax due, within the limit set by the Fiscal Code.
The cap is the lower of:
– 0.75% of turnover;
– 20% of the corporate income tax due.
Within this cap, every RON granted through sponsorship reduces the corporate income tax payable by 1 RON. It is a tax credit, not an ordinary deductible expense.
The mechanism is governed by Law 32/1994 on sponsorship and by the Fiscal Code. It is not a donation and it is not a marketing cost — it is tax that you are directing.
31.168
Spectators per season
11 mil.
Digital views
80,5%
Audience from Bihor County
8
Sports departments
THE CASE, IN BRIEF
The tax liability
Corporate income tax is due whether or not the company sponsors. The Fiscal Code does, however, allow part of this liability to be deducted through a lawfully granted sponsorship, within the limit set by law.
The difference is one of destination: the eligible amount can support CSM Oradea’s sporting activity and is deducted from the corporate income tax due.
Legal basis: art. 25 (4) (i) of the [Fiscal Code]
The mechanism
How it works
Four checks before signing
1
TAX REGIME
Confirm your tax regime
The mechanism is aimed primarily at companies paying corporate income tax. For micro-enterprises, the facility allowing sponsorship to be deducted from income tax was removed as of 1 January 2024.
2
THE CAP
Calculate the cap
Compare 0.75% of turnover with 20% of the corporate income tax due. The eligible amount is the lower of the two.
3
THE CONTRACT
Sign the contract and make the payment
Sponsorship is granted under a written contract. For it to be recognised in the current tax year, both the contract and the payment must be completed within that year; for taxpayers with a calendar tax year, the reference date is 31 December.
CSM Oradea prepares the contract and provides the tax details required to record the transaction
.
4
RECORDING
Record the transaction and declare the beneficiary
The company records the sponsorship in its accounts, applies the deduction within the legal limit and declares the beneficiary through the applicable tax form. The specific treatment is validated by the company’s accountant.
Calculator
Find out your company's tax cap
Enter two estimated figures. For a more accurate result, use the corporate income tax due before the deduction of sponsorships, not merely the accounting profit.
Note for micro-enterprises: Under the current regime, sponsorship is no longer deducted from micro-enterprise income tax. The company can still sponsor, but without this tax credit. For commercial objectives, an advertising contract can be considered separately.
Note for companies liable to minimum turnover tax: The calculation requires checking the corporate income tax determined before the minimum tax is applied. Confirm the amount with your finance department before making a decision.
*The calculator provides an estimate and does not constitute tax or legal advice.*
The calculation applies the rule in art. 25 (4) (i) of the Fiscal Code: the lower of 0.75% of turnover and 20% of the corporate income tax due. For companies liable to minimum turnover tax, the same limit applies under art. 18¹ (10). The estimate is not a substitute for tax advice.
LEGAL OPTIONS
Choose the right mechanism
Sponsorship, redirection or advertising?
These are different instruments, with different rules and different outcomes. The right choice depends on your tax regime and on the company’s objective.
Most common
Direct sponsorship in cash
The company transfers the amount to CSM Oradea under a written contract. For corporate income tax payers, the eligible amount is deducted from the tax due, within the legal cap.
This is the right option when the company wishes to support the sporting activity directly and to benefit from legal recognition as a sponsor.
Law no. 32/1994 and art. 25 (4) (i) of the Fiscal Code.
Goods
Sponsorship in goods
The law permits the granting of material goods, valued in the contract at their real value at the time of handover.
This option may be suitable for equipment, materials or other goods needed for the club’s activity. The accounting and VAT treatment should be checked before signing.
For services, the legal and tax classification must be analysed separately; we do not recommend automatically presenting them as identical to sponsorship in cash.
Most advantageous
Redirection through Form 177
If the tax cap for the previous period was not used in full, eligible taxpayers may ask the tax authority to transfer the difference to the beneficiary.
The request is filed by the deadline for the annual corporate income tax return. For tax year 2026, the general deadline currently provided is 25 June 2027, subject to the exceptions set out in the Fiscal Code.
In this case, payment to the beneficiary is made by the tax authority. The mechanism should not be confused with direct sponsorship carried out during the year.
No cap
Advertising contract
Advertising is a commercial contract, distinct from sponsorship. It is used when the company seeks clear commercial deliverables: spots, product messaging, campaigns, media exposure or measurable activations.
Advertising and publicity expenses may be deductible if incurred for the purposes of the economic activity. The right to deduct VAT depends on the tax status of the parties and on the general conditions in the Fiscal Code; it is not automatic.
Sponsorship and advertising can run in parallel, but they must be documented and invoiced separately, according to the nature of each transaction.
WHAT THE COMPANY GETS
Benefits for the company
Three outcomes that can be verified
1
Tax effect
For eligible taxpayers, sponsorship reduces the corporate income tax due within the legal cap. The calculation and the documents can be checked by the finance department before payment.
2
Reputation and local belonging
The company can associate its name, brand and image with support for sport in Oradea, within the limits of the Sponsorship Law. The message is one of genuine involvement in the community where the company has customers, employees and partners.
3
Commercial access — through a separate contract, where applicable
If the objective is product promotion, lead generation, hospitality or measurable advertising exposure, these deliverables are set out separately, through an appropriate commercial contract.
This way, the company knows exactly what it receives, and the legal separation between sponsorship and advertising remains clear.
WHY CSM ORADEA
A genuine competitor
Your support reaches a public-law sports structure
The Sponsorship Law includes public institutions among the beneficiaries eligible for sporting activities. CSM Oradea is a public institution of local interest and may receive sponsorships in order to carry out its object of activity.
The requirement to be registered in the Register of entities/places of worship applies to beneficiaries that are non-profit legal entities and to places of worship.
By the wording of art. 25 (4) (i), it does not extend to public institutions.
CSM Oradea publishes financial information and documents of public interest, including its budget, balance sheet and budget execution. The company can verify both the beneficiary’s status and the financial information published by the club.
WHAT THE LAW SAYS
The Essential Extracts
The legal basis, with no commercial promises in disguise
The contract must be concluded in writing
Law no. 32/1994, art. 1 (2), requires “written form”. The contract must state the object, the value, the duration and the obligations of the parties.
CSM Oradea is an eligible beneficiary
Art. 4 (1) (b) includes “public institutions and authorities” among the beneficiaries that may receive sponsorships for sporting activities.
The cap is twofold and the lower limit applies
Law no. 32/1994, art. 1 (2), requires “written form”. The contract must state the object, the value, the duration and the obligations of the parties.
Sponsorship allows recognition of the sponsor, not unlimited commercial advertising
The law permits “the promotion of the sponsor’s name, brand or image”, but prohibits commercial advertising within the sponsorship. A separate contract is used for product messaging and advertising deliverables.
Public sports structures may receive sponsorships
Law no. 69/2000 lists sponsorships among the sources of income of public-law sports structures and requires public clubs to publish relevant financial information annually.
Frequently asked questions
What finance directors ask us most often
We are a micro-enterprise. Can we deduct sponsorship from tax?
No, under the current tax regime. The facility applicable to micro-enterprise income tax was removed as of 1 January 2024. The company can still sponsor, but without this tax advantage.
We have already sponsored another organisation. Can we still sponsor CSM Oradea?
Yes, if there is still cap available. The tax limit is calculated at company level and is shared across all eligible sponsorships in the relevant period.
What happens if we exceed the cap?
The portion exceeding the cap does not reduce the corporate income tax due. For current sponsorships, we do not recommend assuming an automatic carry-forward; the position should be checked before payment.
Can we redirect tax already paid?
Eligible taxpayers may use Form 177 for the unused portion of the cap, within the legal deadline for the annual corporate income tax return. Payment is made by the tax authority to the beneficiary.
Does CSM Oradea have to be listed in the ANAF Register?
CSM Oradea is a public institution. The register requirement set out in art. 25 (4) (i) is framed for non-profit legal entities and places of worship, not for public institutions.
What documents are required?
The sponsorship contract in written form, proof of payment or of handover of the goods, and the tax records/returns applicable to the company. CSM Oradea provides its identification details and the contractual documents.
What can we communicate publicly as a sponsor?
The sponsor’s name, brand and image may be communicated as part of announcing the sponsorship. For commercial slogans, product offers, spots and promotional activations, a separate advertising contract is agreed.
How do we know how the funds are managed?
CSM Oradea is subject to the transparency obligations applicable to public institutions and public-law sports clubs. The budget, balance sheet, budget execution and other documents can be consulted on the club’s official website.
In a few minutes we can establish whether the mechanism applies to your company
You send us your tax regime, turnover and estimated corporate income tax before the sponsorship deduction. We provide an indicative calculation, explain the contractual options and send you the documents needed for your internal review.
The final decision rests with the company, following accounting and legal confirmation.
* The information on this page is general in nature and does not constitute tax, accounting or legal advice. The applicable regime depends on the specific situation of each company. Legislation and tax forms may change; check the version in force at the date of the transaction.
