Business Sponsorship – Can you claim?

Often opportunities come up to provide sponsorship for events or competitions and if you’d like to claim these in your business there needs to be a direct relationship between the expenditure and you being able to gain customers or sales from it.

Sponsorship is different to advertising or donations in the way that the business spending the sponsorship money intends that their business will be promoted in some way, but that the recipient, or some other person, will also benefit in some manner other than by receiving ordinary income from business or income earning activities.

With an entertainment portion – the cost of sponsorship is only 50% deductible if the entertainment is more readily available to employees and business contacts than to members of the public. Eg A restaurant pays for a soccer team’s uniforms which have the restaurant’s name on them. The cost of providing the uniforms is fully deductible. However, if the restaurant provides meals for the team, at the grounds, immediately after the game, it will be 50% deductible because they are being provided away from the taxpayer’s business premises.

If you’re thinking of doing business sponsorship and just want to check the deductibility please contact us.

About Kiwitax – Award winning business improvement, tax and accounting service

Here’s the thing. As a businessrental property owner or start-up, you get a kick out of having your own gig. But chances are dealing with your tax and accounting leaves you cold. Good news! We love it, so hand it over to Kiwitax and we’ll look after it all for you.

Whether you deal with us online, by phone or drop into our Napier office, you’ll find a friendly, professional hardworking team ready to work with you, however you keep track of your financial information and from wherever you do business. And all for a fixed price. It takes just two minutes to get a quote.

Plus if you’re at a loss to know how to improve aspects of your business – from growth planning to cashflow management, even tax debt and so much more – we’re all over that too. Our Business Improvement Advisors can help you make a plan and put it into action.

Kiwitax are a preferred training provider for Business Improvement services through the Regional Business Partner Network Capability Voucher Scheme. This is a government funded scheme designed to boost business capability by providing funding of up to 50% of approved training programs with specified training providers up to a maximum value of $5000.

If you liked this article and want to make improvements in your business, with quarterly coaching sessions specifically tailored to support you to identify and achieve your business goals, lets chat!