KPMG Friday Mid-Afternoon Chat on ‘Tax Deductibility of Marketing & Communication Expenses’

Tuesday, 13 July 2021 03:18 - - {{hitsCtrl.values.hits}}

KPMG Sri Lanka Principal, Tax & Regulatory Suresh Perera

KPMG Sri Lanka Director, Tax & Regulatory Director Hasna Hassan

Clootrak Sri Lanka, Maldives and Pakistan Country Head Dr. Rohantha Athukorala

The KPMG Sri Lanka Academy’s 21st virtual session of the Friday Mid-Afternoon Chat series, this week’s webinar will be on ‘Tax Deductibility of Marketing & Communication Expenses – Importance of Reviving Sri Lanka’s Image and the New Tax Policy’.

It will be conducted by Clootrak Sri Lanka, Maldives and Pakistan Country Head Dr. Rohantha Athukorala, KPMG Sri Lanka Principal, Tax & Regulatory Suresh Perera and KPMG Sri Lanka Director, Tax & Regulatory Director Hasna Hassan.

Traditionally, Income Tax statutes have imposed a restriction on the corporate tax deductibility of expenses pertaining to advertising, marketing, promotion, entertainment, etc. However, through the introduction of the recent Amendment to the Income Tax Act No. 24 of 2017 (IRA), the statute has evolved from this restrictive approach, shattering the ceiling with regard to the tax deductibility of marketing and communication expenses.

The new Tax Policy incentivises corporate innovation, creativity towards brand building, product development, market development and revenue growth and provides a golden opportunity for marketing professionals, advertising firms and entities engaged in business

Coupled with the policy allowing tax deductions for marketing and communication related expenses, the Amendment to the IRA provides for the extension of the period for the tax deductibility of broadly defined research and development expenses. The extension provides decision makers the opportunity to navigate the course of their companies in a dynamic manner through venturing into new avenues.

The webinar will dissect the provisions of the new tax law while equipping participants with a comprehensive understanding of the changes.

The session is scheduled for 16 July (Friday) from 3 p.m. onwards.