The Association of Advertisers in Ireland (AAI) has called on the Minister for Finance, Paschal Donohoe to introduce a special 25% tax credit for companies that invest in advertising during 2020 and 2021.
In a letter that was sent to the Department of Finance earlier this week, Barry Dooley, the CEO of AAI requested the tax credit, citing examples of other European countries that were considering similar tax credits in response to the EU-wide collapse in advertising investment.
On March 17th, the Italian government introduced a 30% tax relief on advertising investments in news media, including print, radio, TV and, online incurred during 2020. This is coupled with an already existing tax credit on incremental ad spend year-on-year.
Other European organisations representing advertisers in countries like France, Finland, Belgium, Spain and Denmark have also lobbied their governments to follow the Italians. Further afield, advertising bodies in New Zealand and Australia, are doing the same.
In the letter to the Minister for Finance, the AAI also highlighted the importance of the Irish advertising sector to the economy and has sought an urgent meeting with the Department of Finance to highlight the plight of the wider advertising sector and the devastating impact the current Covid-19 crisis is having on brands and the wider media sector.
