Significant tax incentives have been given to businesses to make advertising spending for both 2020 and 2021.

Advertising costs included are:

(a) posting in places legally intended for outdoor advertising, advertising and sponsorship, or for paid publications; or

b) in the market of time or space, for the purpose of transmission or registration through the following Means of Entertainment: television, radio, cinema, internet, social networking services and other digital media and tools as well as newspapers.

Especially for internet and social media ads, the broadcast or listing should be done by a company registered in the Electronic Business Register.

What is deductible?

It is deducted from the gross income of the companies at the time of its realization, increased by one hundred percent (100%) for the tax year 2020 and by sixty percent (60%) for the tax year 2021.

Prerequisites:

the advertising expenditure incurred by the company for the tax year 2020 to be at least equal to the advertising expenditure for the year 2019, before the issuance of any credit invoices turnover of advertising expenditure.
If the company has suspended its activity or has been financially affected due to the appearance and spread of the coronavirus COVID-19, then the tax incentive for the year 2020 is valid even if the advertising expenditure was equal to 70% of the corresponding 2019.
the advertising expenditure of the company for the tax year 2021 exceeds by 5% the advertising expenditure of the year 2019, before the issuance of any credit invoices turnover of advertising expenditure.

The above applies to natural persons engaged in business activity, as well as legal persons, who make the above expenses (haplographic or bibliographic books).

The increased deduction on the specific expenses is made off-balance sheet by submitting the income tax return in the respective years of their realization.

If losses occur after deducting the above percentages, they are transferred to subsequent years.

It is noted that the increase only concerns the cost of advertising or the purchase of time or space in the media. Therefore, other advertising costs or any ancillary costs / fees for services provided to the advertised companies do not fall under the above provision.

In the event that the relevant accounting data does not clearly show the amount corresponding to the advertising expenditure of this article, the taxpayer must document by any appropriate means the amount of the advertising expenditure that falls under this provision.

The cost of advertising for the application of this article means the amount remaining after the deduction of any taxes or other charges.

Finally, it is pointed out that the conditions apply individually and are applied separately for each year in order for the expenses to be deducted from the gross income during the year of their realization. Therefore, if a company meets these conditions in one of the two years, it is entitled to deduct the advertising costs increased in accordance with the provisions of Article 22C in that year, regardless of whether in the next year it is not entitled to the corresponding discount.