Advertising & Marketing — New Zealand Tax Rules

Claim all costs of promoting your NZ business — digital advertising, website costs, print materials, and more.

Claimable: Fully claimable · Tax authority: Inland Revenue

Inland Revenue Rules

• All advertising and marketing expenditure incurred to promote your business and earn income is fully deductible.
• Digital advertising — Google Ads, Facebook/Meta Ads, LinkedIn Ads, Instagram promotions — is claimable in full.
• Website design, development, hosting, and domain registration fees are deductible.
• Printed marketing materials — business cards, flyers, brochures, signage — are deductible in full.
• Market stall fees, trade show exhibitor costs, and sponsorship of business-related events are claimable.
• Promotional gifts to clients may be deductible if they relate to your business — but gifts with a social or entertainment element may be subject to the 50% entertainment limitation; check with your accountant.

Limits

No cap on advertising expenditure — all legitimate promotional costs are deductible. Large custom website builds may need to be depreciated rather than expensed if treated as a capital asset.

Worked Example

Jade spends NZ$300/month on Google Ads (NZ$3,600/year), NZ$180/year on website hosting, NZ$60/year on domain registration, and NZ$250 on business cards. Total claim: NZ$3,600 + NZ$180 + NZ$60 + NZ$250 = NZ$4,090. All are directly promotional costs for her photography business.

Record Keeping

• Keep invoices and billing statements for all digital advertising platforms
• Retain website developer invoices and hosting/domain receipts
• Keep copies of printed materials and related supplier invoices
• Record market stall fees and trade show registrations with business purpose
• Document any promotional gifts with the recipient and business purpose

Frequently Asked Questions

Can I claim social media advertising in full?

Yes. Paid advertising on Facebook, Instagram, LinkedIn, TikTok, and similar platforms is fully deductible as a business marketing expense. Keep your billing statements from each platform as evidence.

Is building a new website deductible or does it need to be depreciated?

Routine website design, development, and maintenance costs are generally deductible as revenue expenses. However, a large, complex website representing a significant capital asset may need to be depreciated. If your website cost is modest (under NZ$1,000), expense it immediately. For significant website builds, discuss the treatment with your accountant.

Can I claim trade show exhibitor fees and market stall costs?

Yes. Market stall fees, trade show exhibitor and registration costs, product display materials, and related expenses incurred to promote your business are fully deductible advertising and marketing costs.

Are branded promotional items like branded pens or tote bags deductible?

Yes, if the promotional items bear your business name/logo and are distributed for marketing purposes. Modest branded items given at trade shows or to clients for promotional benefit are deductible advertising costs. Extravagant gifts with a social element may be partially limited under the entertainment rules.

If I earn over NZ$60,000, do my advertising costs affect my GST position?

Once registered for GST (mandatory above NZ$60,000 taxable turnover), advertising spend with NZ GST-registered suppliers is a GST input — you can claim back the 15% GST component on your GST return in myIR. Separately, the net (ex-GST) advertising cost remains a deductible expense in your IR3. Overseas platforms like Google Ads and Meta Ads charge no NZ GST, so the full invoice amount is your deductible cost.