Advertising is an essential part of starting and maintaining a profitable small business. It can also present a significant annual business expense. As with all business-related expenses, you want to be able to offset that cost with tax deductions. Before you decide how and where to advertise your business, make sure you understand what you can and can’t write off as an advertising expense.
When deciding how to market your business, it’s important to remember that The Canada Revenue Agency (CRA) is more inclined to offer tax incentives to businesses that generate commerce within Canada.
This means that there’s a good chance that your advertising expenses are fully deductible if you choose to target a Canadian audience with your promotions. Advertisements aimed at international audiences are significantly more restricted when it comes to tax deductions and may not be deductible at all.