Skatte- og momsmæssige forhold ved sponsorater: En analyse af de skatte- og momsmæssige forhold ved sponsorater

Morten Blichfeldt Andersen

Student thesis: Master thesis

Abstract

The purpose of this thesis is to analyze the legal treatment of sponsorships for tax and VAT purposes, and to show what economic consequences companies might suffer if expenses to sponsorships are treated wrongly. The approach in this thesis is first to go through applicable law on the subject of sponsorships, both related to tax and VAT, hereafter to analyze and visualize how to navigate on the difficult conditions a sponsorship needs to fulfill to be considered a deductible expense. Finally, the thesis will look at the economic consequences for both companies and company owners. All calculations and visual figures can be found in the appendices. The results of the analysis shows that the treatment of sponsorships for tax and VAT purposes are similar, this means that the VAT treatment follows the legal treatment of the tax purpose. Results of the legal treatment of sponsorships for tax and VAT purposes shows that a sponsorship can only be deducted if 3 main conditions are fulfilled: - The sponsorship must be held for an unspecified group of customers. - The sponsorship must have a promotional value for the company. - The sponsorship must have a promotional motive. If the sponsorship does not fulfill these conditions, then it will, as a general rule, not be possible to deduct the expense in the tax and VAT calculation. This thesis also finds that the economic consequences for both companies and owners can be severe, if the sponsorship has been misjudged and the company has done an incorrect accounting. Recent cases from SKAT shows that a sponsorship made through a company by its majority stakeholder in his own interest are not deductible, but will be considered as masked dividends and taxed with equity income of up to 42%. As sponsorships, gifts and representation expenses are all closely related as in nature and in the concerns of the legal analysis, this thesis also looks at the legal treatment of all three expenses. However this thesis main focus and conclusion will only be about the taxation of sponsorships. As a closing remark the thesis also discusses the similarities and differences between the limits of tax deduction of the Danish law and laws of United Kingdom.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2016
Number of pages114