To boost consumption and strengthen trade, companies should be given generous tax incentives to carry out advertising costs. For the financial years 2021 and 20221 and with a view to increasing consumption, undertakings should be able, subject to conditions, to deduct tax on their advertising expenditure plus 100%.
by Thanos S. Chonthrogiannis
©The law of intellectual property is prohibited in any way unlawful use/appropriation of this article, with heavy civil and criminal penalties for the infringer.
More specifically, to belong to the above category, advertising expenditure should belong to the following cases:
1. Buying time or space for the purpose of broadcasting or registering media and entertainment media (TV, radio, cinema, press, internet, social media, and any other digital means).
2. Posting advertising messages or paid publications in places legally intended for outdoor advertising.
It should be noted that advertising expenditure should be deducted only in so far as it relates to the advertising costs of these cases. Any other advertising costs or any ancillary costs or fees for services provided to advertised businesses should not belong to the above tax arrangements.
The advertised undertaking will have an obligation to document by any means the amount of advertising expenditure to be deducted 100% and provided that this amount is not clearly apparent from the relevant accounting data.
In addition, for ads made online, for the 100% tax deduction to apply, the company that displays the ad must be concerned with it alone and not any intermediary businesses that mediate between the advertiser and the company that broadcasts or registers the ads.
In other words, advertising expenditure is not tax deductible when it concerns advertisers or advertising undertakings – intermediaries. Advertising expenditure should therefore be reduced from gross revenue in the year in which it is carried out.
