# Can I claim Advertising and Marketing as a business expense in Canada?

**Yes, fully claimable.** 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.

Typical amount: CAD 1,000 to CAD 30,000 per year depending on business size and marketing spend.

## What Canada Revenue Agency (CRA) says

Section 18(1)(a) allows advertising as a business deduction. CRA's guide says advertising in Canadian newspapers, TV and radio is deductible, and finder's fees are included. For periodicals, 100% is deductible if the advertising targets a Canadian market and original editorial content is 80% or more of the non-advertising content, otherwise 50%. Advertising aimed mainly at a Canadian market through a foreign broadcaster is not deductible under Section 19.1. The Canadian content requirements do not apply to foreign websites, so online advertising on foreign platforms 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.

**Important:** Political donations or advertising that supports a political party are not business advertising. Keep the ad invoice, the platform report and the target market with your records if you advertise in a foreign periodical or broadcast.

Source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/advertising.html

## Related expenses

- [Professional and Legal Fees](https://accounts-os.com/ca/expenses/professional-fees-ca)
- [Staff Salaries and Wages](https://accounts-os.com/ca/expenses/staff-salaries-ca)
- [Equipment and Computer Hardware](https://accounts-os.com/ca/expenses/equipment-computer-ca)