DEDUCTION OF MARKETING EXPENSES
All those expenses that are incurred to increase the visibility of your website are 100% deductible during the year in which they are incurred or can be amortized over the next 5 years. The claim must be made when making your tax return and are subtracted from your taxable income; they must meet the requirements of:
- Accrual – expenses must be charged to the year in which they are incurred (if they relate to services performed between two years, the relevant portion of the expense must be charged in each of these years)
- Certainty – documentation of expenses is required
- Relevance – there must be a correlation between the advertising expenses incurred and the revenue obtained.
The following marketing expenses are 100% deductible:
- web marketing consultancy
- social media marketing consultancy
- influencer marketing
- content marketing
- community marketing
- web marketing and social media marketing training
- logo and website design
VAT for marketing expenses is deducted at a rate of 50%.
Marketing costs can also include advertising costs, which are typical for companies that operate offline. All marketing and advertising expenses related to a clear contract, including web and social media marketing consultancy, are 100% deductible.
The AdE considers as such all the initiatives used to maintain and spread the corporate image and reputation of the professional when there is no clear and distinct correlation with a material income, certain or potential. An expense must have a fundamental characteristic to qualify as an entertainment expense: its gratuitous nature or the lack of a consideration paid by the other party for access to the professional’s services. They are not fully deductible and do not allow the deductibility of the VAT paid on the invoice.
Specifically, Resolution No. 27/E of 12 March 2014, considers the following to be included in entertainment expenses: expenses for tourist trips for promotional purposes; expenses for parties, receptions and banquets, inaugurations and events, and other expenses for the free distribution of goods and services (gadgets at trade fairs and conventions). Since the entry into force of the Jobs Act autonomous these expenses are no longer deductible at 75% but at 100%, albeit within the original limit provided by the Tax Law, which is 1% of the total annual remuneration of the professional.