Incentives for sponsors of sports activities

The Fiscal Code draft, which is to come into effect on January 1st, 2004, includes a series of stipulations meant to ease up the attraction of additional financial sources for sports activities, Romanian Finance minister Mihai Tanasescu announced. The normative document draft points to two types of financial incentives aimed at firms financing sports, cultural or religious activities. One of these incentives is the deductibility of advertising expenses. The other one covers sponsorship, for which firms may directly deduct the sums they spend from the profit tax. In this case, the sums earmarked for sponsorship activities must meet two conditions at the same time, namely they should account for no more than 3 thousandths of the turnover and not exceed 60% of due profit tax. “The important thing is for these stipulations to be put into practice starting next year and for federations to fight for the attraction of these additional financial sources,” Tanasescu said. ZF