Effectively plan your marketing budget with this handy table of tax advice
Some marketing expenses like vehicle or building signage are capital costs whereas updating websites, software subscriptions or writing blogs are classed as 100% deductible expenses.
When budgeting for marketing and advertising costs, it's important to know the tax implications - what is a deductible expense or a depreciable capital cost?
Download our PDF for a list of some common marketing costs.
Common marketing costs - tax advice
Advertising & Marketing Costs | Expense 100% deductible | Capital Cost - Depreciable | Expense - Not deductible |
|---|---|---|---|
Vehicle Wraps | ✅ | ||
Building Signage | ✅ | ||
Purchase of promotional vehicle | ✅ | ||
Build of website | ✅ | ||
Updating (editing particular pages) of website | ✅ | ||
Writing blogs (intended for use within 12 months) | ✅ | ||
Animations for blog or website (cost under $1,000 to be used long term) | ✅ | ||
Animations for blog or website (cost under $1,000 or to be used under 12 months) | ✅ | ||
Animations for blog or website (cost under $1,000 or to be used under 12 months) - where the animations form part of the website | ✅ | ||
Recording or editing of reels/videos which will be used for promotional purposes and cost under $1,000 | ✅ | ||
Creation of significant advertising campaigns aimed at establishing a new business or entering a new market | ✅ | ||
Photo shoots to be used on the website of clients or representation of your business e.g. capitalised as part of website asset OR independent advertising campaign | ✅ | ✅ | |
Costs incurred in developing a label and container for the product to be stored in | ✅ | ||
Costs of altering existing package design | ✅ | ||
Software subscriptions | ✅ | ||
Regular advertising campaigns - advertising in media, seasonal promotions | ✅ | ||
Sponsorships for Business Exposure - Provided you meet IRD requirements for sponsorship expenditure (see more information here) | ✅ | ||
Project started to create an item of depreciable property but not completed (cost under $10,000) | ✅ | ||
Project started to create an item property, that would not be depreciable, but not completed (cost under $10,000) | ✅ |
Disclaimer
This article is for informational purposes only and should not replace specific tax advice. For personalised advice please contact us.
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