Deductions for advertising expenses

This applies to you if you run a business and have advertising expenses.

• consider whether the business is entitled to a deduction for the expenses
• enter the expenses into the accounts
• keep documents showing the expenses you’re claiming a deduction for

Promotional items

Gifts are considered promotional when all of the following conditions are met:

• the costs for each gift item do not exceed the maximum amount, including value added tax
• the gift is intended as advertisement, and produced in bulk
• the name or logo of the business is clearly visible on the gift item

Examples:

corkscrews, keyrings, stationery or desk calendars with the name or logo of the business

Sponsorship expenses

Businesses can claim deductions for sponsorship expenses that have a promotional value.

Example:

car dealers lending cars to athletes

Borderline cases

There may be borderline cases where the expenses are considered welfare measures or representation, and not advertising.