When calculating income tax, include promotion costs in other expenses related to production and sales (subparagraph 28 of paragraph 1 of Article 264 of the Tax Code). Costs are recognized either in full or within the established standards, depending on their type.
Advertising expenses are taken into account for the period of actual distribution of information materials if the company uses the accrual method (clause 1, Article 272 of the Tax Code). When using the cash method, expenses are attributed to the period of their payment (clause 3, Article 273 of the Tax Code).
If the contract stipulates the provision of advertising services throughout the year, the accounting of expenses is carried out as follows:
based on the fact of publication of marketing materials, confirmed by the report of the performing company;
in equal installments monthly if advertising distribution or reporting occurs at specified intervals.
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Types of advertising expenses in tax accounting
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 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.