The Association of Advertisers in Ireland are calling on the Government to introduce a 25% Tax Credit for companies investing in advertising in 2020 and 2021.
Last week we sent a letter to the Department of Finance requesting an urgent meeting with Minister for Finance, Paschal Donohoe to discuss the possible introduction of the special tax incentive.
Also within the letter Barry Dooley, CEO of AAI referenced examples of other countries where similar measures are in place or are being considered in response to the global pandemic and the subsequent collapse of advertising investment.
In countries like France, Finland, Belgium, Spain and Denmark similar organisations representing advertisers have lobbied their governments for such measures. Outside of Europe, advertising bodies in New Zealand and Australia, are doing the same.
While in Italy a 30% tax relief on advertising investments in news media, including print, radio, TV and, online incurred during 2020 was introduced on 17th March. This was added to an already existing tax credit on incremental ad spend year-on-year.
It is the intention of the AAI to highlight to the Minister the importance of the Irish advertising sector to the economy and the devastating impact the current Covid-19 crisis is having on brands and the wider media sector. Every business sector including the collective marketing, media and creative community is likely to be decimated if adspend falls in the way predicted.