In recent years, corporate sponsorship has increasingly been used as an independent communication tool for image maintenance and improvement, as well as for stabilizing and increasing brand awareness, in order to gain competitive advantages. In return, the financial support for the sponsored entity represents a significant, often indispensable source of income. This work systematically categorizes the phenomenon of sponsorship and presents a comprehensive concept for the tax treatment of sponsorship expenses for both the sponsor and the sponsored entity, based on case groups. The income tax and corporate tax issues at the center of the discussion are complemented by considerations of value-added tax and gift tax.