GREAT PAINTING

Buying a work of art is deductible from company profits

A company which buys an original work can under certain conditions deduct from its annual result, the purchase price of the acquired work.

WHY ?

Shape and improve its image by sponsoring a living artist, modernize and decorate your professional premises with original works: reception hall, meeting room, offices, rest rooms, outbuildings, showroom, waiting room, office, display case, stores, sales rooms, etc.

HOW? 'OR' WHAT ?

1. The works must be produced by living artists, and must be exhibited in a place accessible to employees, customers, suppliers, etc., for the duration of the amortization of the work, ie 5 years.

2. The tax deduction made for each financial year cannot exceed 5 per thousand of the company's annual turnover.

3. The deduction will be 20% of the purchase price of the work for 5 years.

4. Original works by living artists are excluded from the professional tax base.

Extract from the corresponding general tax code: Art 238 bis AB, acquisition of works of art. Companies can deduct from their taxable income the cost of acquiring original works by living artists recorded as fixed assets, provided they remain on display to the public.

This deduction is made in equal fractions on the results of the financial year of acquisition and the following four years for works purchased from 01/01/2002 (or the following nine or nineteen years for other works following that they were acquired from 01/01/1994 or before that date).

The deduction made for each financial year, entered in a special reserve account, cannot exceed the limit of 5 per thousand of turnover, minus the total of other deductions made for sponsorship.

In return for this tax deduction, the company must present the acquired works over 5 years to the public. For works for which the purchase price is less than € 5,000 excluding tax, the Minister Delegate for the Budget accepts that the condition of public exhibition is satisfied when the work is exhibited in a place "accessible to customers and / or employees of the company, excluding personal offices ”.

Find out more on http://www.legifrance.gouv.fr