New taxation of sponsorship

Tuesday, 03. June 2014, 12:50

Pharmaceutical companies spend annually around 40 million euros on the promotion and marketing. This money is used to sponsor doctors and pharmacists. The Ministry of Finance plans to tax these promotional activities. For example, if the company has paid doctors for participation in the Congress, than has to pay 19 per cent tax from the amount company spent on it. Companies and practitioners disagree with this tax. Currently, sponsorship is in the declaration of taxes listed by doctors. Ministry of Finance, however, seem suspicious amounts they admitted. Pharmaceutical companies have reported that they spent more than 41 million on the promotional activities, but doctors according to the Ministry taxed only tens of thousands of euros.