Can I Claim Advertising and Marketing as a Business Expense in Canada?
Generally fully deductible for Canadian and digital advertising. Foreign advertising directed at the Canadian market is only 50% deductible under Section 19 of the Income Tax Act. This restriction applies to advertising in foreign newspapers, magazines, and broadcasts (including foreign cable TV) that are directed at a Canadian audience.
What Canada Revenue Agency (CRA) says
Section 18(1)(a) allows advertising as a business deduction. Section 19 restricts the deduction for advertising in foreign periodicals directed at the Canadian market to 0% (newspapers) or 50% (periodicals). Section 19.1 restricts deductions for foreign broadcasting. These restrictions do not apply to online advertising from foreign platforms like Google or Meta, which is generally fully deductible.
When you can claim
- 100%: advertising in Canadian newspapers, magazines, radio and TV stations
- 100%: digital advertising (Google Ads, Meta Ads, LinkedIn Ads) regardless of the platform's country
- 100%: website design, hosting, SEO services, and content creation for Canadian businesses
- 100%: trade show costs, promotional materials, and branded merchandise for business promotion
- 50%: advertising in foreign periodicals directed at Canadian audiences
When you cannot claim
- Advertising in foreign newspapers targeting Canadians (0% deductible under Section 19)
- Personal promotion costs unrelated to earning business income
- Political donations or advertising that supports a political party
Good to know
Pro tip: Online advertising on foreign platforms (Google, Meta, LinkedIn) is fully deductible even though the platform is non-Canadian. The Section 19 restriction targets traditional foreign media, not internet advertising. Keep invoices showing the advertising platform and purpose.
Stop guessing what you can claim in Canada
AccountsOS automatically categorises expenses with Canada Revenue Agency (CRA)-aware rules and tells you exactly what is claimable.
Try Free