Are advertising and marketing costs deductible in Canada?

Yes — advertising and marketing expenses incurred to promote your business are fully deductible on Form T2125. Common examples include: **Fully deductible:** - Website design and hosting fees - Google Ads, Facebook/Instagram ads, and other digital advertising - Business cards, flyers, brochures, and printed materials - Signage and branded merchandise (pens, uniforms for marketing purposes) - Sponsorships of community events for business promotion - Email marketing services (Mailchimp, Klaviyo, etc.) - SEO services and content creation costs - Photography and video production for marketing **Restricted deductions:** - Advertising in **foreign publications** targeting Canadian audiences is generally not deductible under the Income Tax Act (with some exceptions for digital advertising) - Advertising on foreign radio or TV stations directed at Canadians is also restricted **Social media and content creation:** If you run a business that requires social media presence (photographer, consultant, coach), all related tools, subscriptions, and creation costs are deductible. Keep receipts and document the business purpose for each expenditure.

• Advertising and marketing costs are fully deductible on T2125
• Includes digital ads, website costs, printed materials, and sponsorships
• Restrictions on advertising in foreign publications directed at Canadians
• Social media tools and subscriptions are deductible if business-related
• Retain receipts and note the business purpose