Types of advertising expenses in tax accounting
Posted: Sun Jan 19, 2025 4:59 am
The accounting documentation does not provide for the division of marketing costs. For display in tax accounting, one should proceed from the assignment of expenses to one of two categories:
Unstandardized, fixed in full amount.
Standardized, counted within established limits.
In the first case, we are talking about a closed list of expenses; all other expenses belong to the second category.
Unregulated advertising expenses
This category includes the following expenses for the promotion of goods and services:
Placement in all physician data package types of media, including television, radio, printed newspapers and magazines, Internet resources.
Outdoor advertising: illuminated signs and boxes, billboards, stands, banners, stretches, stands.
Presentation of products at exhibitions: showcases, stands, showrooms, sample rooms.
Participation of the advertising company in fairs and exhibitions.
Printed product catalogues, brochures with information about the manufacturer.
Sale of discounted goods, including display samples.
For correct reflection in tax accounting, the full amount of expenses for the listed types of advertising is taken. They are carried out as general expenses related to production and sales. When to reflect these expenses depends on the tax regime.
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Standardized advertising costs
These costs include:
The cost of prizes issued specifically for the advertising campaign.
Other promotional expenses not included in the list of non-standardized ones.
The list of standardized costs is not limited by law; it includes all advertising costs that are not related to those specified in the first list.
Standardized expenses may be taken into account within one percent of the amount of revenue from sales. Expenses exceeding this limit must be reflected in accounting, but are not included in the income tax base.
It is possible to recognize excess advertising expenses in the next billing period, namely, to transfer the remainder to the next quarter, but only within one year. If expenses exceeded the limit in the fourth quarter, they cannot be taken into account in the first quarter of the next year.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
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A proven guide to defining a company'
Unstandardized, fixed in full amount.
Standardized, counted within established limits.
In the first case, we are talking about a closed list of expenses; all other expenses belong to the second category.
Unregulated advertising expenses
This category includes the following expenses for the promotion of goods and services:
Placement in all physician data package types of media, including television, radio, printed newspapers and magazines, Internet resources.
Outdoor advertising: illuminated signs and boxes, billboards, stands, banners, stretches, stands.
Presentation of products at exhibitions: showcases, stands, showrooms, sample rooms.
Participation of the advertising company in fairs and exhibitions.
Printed product catalogues, brochures with information about the manufacturer.
Sale of discounted goods, including display samples.
For correct reflection in tax accounting, the full amount of expenses for the listed types of advertising is taken. They are carried out as general expenses related to production and sales. When to reflect these expenses depends on the tax regime.
Read also!
"B2B Marketing: Key Features, Promotion Channels"
Read more
Standardized advertising costs
These costs include:
The cost of prizes issued specifically for the advertising campaign.
Other promotional expenses not included in the list of non-standardized ones.
The list of standardized costs is not limited by law; it includes all advertising costs that are not related to those specified in the first list.
Standardized expenses may be taken into account within one percent of the amount of revenue from sales. Expenses exceeding this limit must be reflected in accounting, but are not included in the income tax base.
It is possible to recognize excess advertising expenses in the next billing period, namely, to transfer the remainder to the next quarter, but only within one year. If expenses exceeded the limit in the fourth quarter, they cannot be taken into account in the first quarter of the next year.
Download a free selection of tools for calculating KPIs and increasing marketing metrics
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you 6 of the most valuable documents that we have developed for our clients.
Download for free and implement today:
Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion
Find out what metrics are needed to properly optimize your website
40 Services for Working with Blog Content
We have collected the best services for working with content
How to define your target audience without mistakes?
A proven guide to defining a company'