Advertising Expenses – Tax Incentives

According to Article 39 of Law 5005/2022, the tax incentive of the increased deduction of advertising expenses of Article 22C of Law 4172/2013 is extended to the tax year 2023.

 Deductible forms of advertising expenses

The increased tax deduction concerns the following advertising expenses incurred by the business during the tax year 2023.

• Outdoor advertising
• Advertising expenses for the purpose of purchasing time or space:
• On TV
• On the radio
• In the cinema
• On the Internet*
• On social networks and other digital media and tools*
• In newspapers and magazines

*Provided that the transmission or registration was carried out by a company that is registered in the Register of Electronic Media Companies.

Specifically, if the company that transmits or registers the advertisement is not registered in the Register of Electronic Media Businesses and is registered during the tax year 2023, then the advertising costs incurred after its registration are deductible.

Article to read:

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Tax incentive for advertising expenses

For the advertising expenses mentioned and if the prescribed conditions are met, they are deducted from the gross revenues of the companies at the time of their realization, increased by a percentage of 30% for the tax year 2023.

We remind you that the above advertising expenses were deducted from the gross income by 100% for the tax year 2020, 60% for the tax year 2021, and 30% for the tax year 2022.

Which companies can benefit

The increased discount on advertising expenses for the tax year 2023 applies to all legal entities, regardless of the method of keeping their accounting books (double-entry or single-entry bookkeeping system).

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Conditions for receiving the tax incentive

For the tax incentive to apply, the company must meet a number of conditions, as listed below:

• Article 22 of Law 4172/2013, states that when determining the profit from business activity, the deduction of all expenses is allowed if:
  • are carried out in the interest of the company or during its usual commercial transactions (including corporate social responsibility actions, provided that the company shows accounting profits at the time of their implementation),
  • correspond to an actual transaction and the value of the transaction is not considered lower or higher than the market value, based on the data available to the Tax Administration,
  • they are recorded in the books kept showing the transactions of the period in which they are carried out and proven with appropriate supporting documents.
• The advertising expenditure of the enterprise for the tax year 2023 amounts to at least 105% of the amount of the pre-issuance of credit invoices turnover of advertising expenditure for the year 2019 (base year).
• They fall under the deductible forms of advertising expenses.

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How can QBC help you?

Following the latest developments in tax legislation and having the necessary know-how, QBC Tax Consultants are at your side to help you achieve maximum tax compliance and benefit for your business.

Through accounting outsourcing and supervision services, QBC supports businesses in evaluating and restructuring their existing accounting systems to make them more efficient and effective.

T: + 30 216 900 7576
E: info@qbc.gr