Law of Romania on Sponsorship (1994, as amended 1998) (English)
Law on Sponsorship
No. 32/1994 as amended and complemented by the Government Ordinance No. 36 of January 30, 1998
(Translation made by the "Policies for Culture Project" on the occasion of the international seminar held in Sinaia in July, 2000)
(excerpts)
Art. 1
(1) For the purpose of this Law sponsorship is the legal transaction through which two persons agree on transferring the ownership right over assets or financial means with a view to supporting non-lucrative activities run by one of the parties referred to as recipient of sponsorship.
(2) The existence and content of a sponsorship contract shall be proved by its written form stipulating the contract object, value, duration and the terms and conditions for the parties.
(3) For the purpose of this Law patronage is an act of liberality by which a natural person or a legal entity referred to as patron, transfers without any direct or indirect compensation duty its ownership right over assets and financial means to a natural person as a philanthropic activity of humanitarian nature to run activities in the cultural, artistic, medical and sanitary or fundamental and applied scientific research areas.
(4) The existence and content of a patronage act shall be proved by its authentic version stipulating its object, duration and value.
(5) In case of sponsorship or patronage consisting of assets, the latter shall be valued through the legal act concluded at their real value at the time they are handed over to the recipient.
Art. 2
A sponsor can be any Romanian or foreign natural person or legal entity engaged in sponsorship according to the law.
Art. 3
Romanian natural persons or legal entities shall not run sponsorship or patronage activities based on budget related sources.
Art. 4
(1) Sponsorship can be received by:
a) any non-lucrative legal entity that runs or will run an activity in the cultural, artistic, educational, fundamental or applied scientific research, humanitarian, religious, philanthropic, sporting, human rights, medical and sanitary, social assistance and services, environment protection, social and community, professional representation areas as well as in areas dealing with the maintenance, restoration, preservation and value enhancing of historical monuments;
b) the public institutions and authorities, the relevant bodies of the public administration for the activities specified under subparagraph a);
c) television or radio programmes as well as books and publications in the areas specified under subparagraph a) of this Law;
d) any natural person whose activity is one of the areas specified under subparagraph a) is recognized by a non-lucrative legal entity or by a public institution constantly involved in the area the sponsorship is requested for.
(2) Any natural person without having to be recognized by a non-lucrative legal entity or public institution which requires support in the areas specified under Article 1(3)2 can be recipient of patronage.
Art. 5
(1) The sponsor or the recipient shall have the right to bring sponsorship to the public knowledge by promoting the sponsor's name, brand or image.
(2) The sponsor or the recipient shall bring sponsorship to the public knowledge in a way so as not to directly or indirectly endanger the sponsored activity, morals or the public order.
(3) The denomination of publications as well as the titles of books, radio and television programmes enjoying sponsorship shall be announced as such.
(4) Announcements shall be worded so as to clearly highlight sponsorship and shall be brought to the public knowledge free of charge by the recipient of sponsorship.
(5) The sponsor, the patron or the recipient shall not engage in prior, concurrent or subsequent advertising in their own favour or in favour of other persons within the framework of sponsorship or patronage activities.
Art. 6
The facilities provided for in this Law shall not be granted in case of:
(a) mutual sponsorship between natural persons or legal entities;
(b) sponsorship to a nonlucrative legal entity by a legal entity directly supervising or controlling the sponsored legal entity.
Art. 7
The provisions of Article 6 shall also apply to the natural persons and legal entities performing acts of patronage.
Art. 8
(1) The Romanian natural persons or legal entities involved in sponsorship in the areas specified under Article 4 shall enjoy a reduction on their taxable base by the sponsorship value but not more than:
a) 10% of the taxable base for sponsorship in the following areas: culture, arts, education, health, social assistance and services, humanitarian activities, environment protection;
b) 8% of the taxable base for sponsorship in the following areas: education, human rights, fundamental and applied science and research, philanthropy, maintenace, preservation and value enhancement of historical monuments, sports with the exception of soccer.
c) 5% of the taxable base for sponsorship in religious, social and community areas, in the representation of the interests of professional associations, in soccer.
(2) The Romanian natural persons or legal entities involved in acts of patronage in accordance with this Law shall enjoy a reduction on their taxable base by their equivalent value but not higher than 10% of the taxable base.
(3) The overall reductions on the taxable base for sponsorship performed according to paragraph (1) to which those arising from patronage acts are added shall not exceed 10% of the revenue or of the taxable profit as the case may be.
(4) The foreign natural persons or local entities that according to the legislation in force owe a tax to the Romanian state for a revenue made in Romania and which perform acts of sponsorship or patronage shall also enjoy a reduction on the taxable base by the equivalent in lei of sponsorship or patronage calculated at the day's exchange rate in force upon ownership transfer according to the same quotas applied to the Romanian natural persons or legal entities according to the previous paragraphs.
Art. 9
(1) The sums arising from sponsorship or patronage shall be income tax free.
(2) The above provision shall apply also to the assets received through sponsorship or patronage according to this Law."
Art. 10
(1) The facilities provided for in this Law shall not apply to those sponsors that directly or indirectly aim at directing the recipient's activity.
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