Sponsorship

Sponsorship is intended to promote the company’s brand image. It therefore responds to an explicitly calculated and reasoned commercial approach, its impact must be quantifiable and proportionate to the initial investment.

Expenditure incurred by undertakings in connection with events of a cultural character or contributing to the development of the artistic heritage or the dissemination of French culture, language and scientific knowledge, are deductible from taxable income the company when they are engaged in the direct interest of the operation (art. 39-1-7° CGI).

This condition is considered fulfilled when:

• the identification of the company that intends to promote its brand image is ensured whatever the medium used (posters, press announcements, media effects,...)
• the expenses incurred are in relation to the expected benefit by the company. The latter must be able to justify that the costs incurred in a sponsorship action are not excessive in view of the size of the expected consideration.

Expenses incurred must meet the general conditions of expenses in the same way as other overhead expenses.

Due to its commercial character, the sponsorship expenditure must be invoiced subject to VAT.