Companies in Romania may be able to deduct 1% of their turnover as sponsorship costs or costs on private scholarships, according to a draft law the Senate approved yesterday, reports local Profit.ro.

At the moment, local firms can deduct 0.5% of their turnover or 20% of their profit as sponsorship costs, according to the Fiscal Code.

Several MPs from the National Liberal Party (PNL) drafted a bill to increase this threshold from 20% of the profit to 35%. However, the senators in the budget committee decided that it’s not justifiable to increase the threshold to 35%. They decided instead to raise the 0.5% threshold of the turnover to 1%.

The Senate voted the bill yesterday. The draft law will now be sent to the Chamber of Deputies.

editor@romania-insider.com