BackThe Supreme Court (SC) has confirmed its new position on taxation and has established that private companies can deduct up to 15% in corporate income tax for advertising or promotional expenses related to events of general interest, such as a sporting event in a city.
The SC has modified its criterion on taxation and has determined that the tax deduction in the Corporate Income Tax for advertising or promotion made by private companies on events of general interest must be applied on the total cost of the advertising campaign. The purpose of the rule establishing this tax deduction is to encourage companies to collaborate with the Administration in the dissemination of events of general interest in exchange for the tax deduction, which acts as consideration for the advertising service provided for the general interest. The ruling states that the tax deduction cannot be applied on the cost of the logo insertion, but on the cost of the integral advertising performance. The new position has the unanimous support of the Chamber.
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