Normal corporate gifts are sample shipments of products or when company has a special day and sends gifts to clients and business partners. Corporate gifts have a low value and they are intended to send to many clients. They have usually company`s logo in it.
Representation gifts are more custom and individual. Representation gifts are usually meant for the customer on a special day. If the gift has low value and it is like a corporate gift it can be counted as a promotional gift. Alcohol gifts are always considered as representation gifts.
Promotional and representation gifts in taxation
Promotional gifts are entirely deductible in value added taxation and industrial and commercial activity taxation. Representation gifts are not deductible in value added taxation and 50 percent deductible of industrial and commercial activity taxation.
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