ARTISANS - TRADERS - COMPANIES - COMPANIES - LIBERAL PROFESSIONS
BRING ART INTO YOUR BUSINESS, HELP CURRENT PAINTING ARTISTS and DEFISCALIZE !!
Take advantage of tax deductions for the purchase of one of my paintings ...
Under article 238bis AB of the General Tax Code, companies that buy works by living artists benefit from advantageous tax provisions.
For works whose purchase price is less than € 5,000 excluding tax, companies and liberal professions can deduct the purchase price from the result of the acquisition period and the following 4 years in equal fractions. This benefit is granted on condition that the works are exhibited free of charge in a place “accessible to the public, to clients and / or to company employees, excluding personal offices ”.
Build up a collection of contemporary art, embellish your showroom, exhibition stores, waiting rooms and reception halls ... and save on your taxes!
Art within your company is a way to assert your values and your identity, offering a capacity for a new discourse to all your employees in contact with customers. You will share a common pleasure with your suppliers, partners and customers, making it possible to establish a more human relationship, one that brings intimacy and trust.
Your sponsorship initiative will turn out to be as much a tool for management and internal communication as a springboard for the company's image.
Here are the 5 unchangeable reasons for making Art your first TAXATION tool:
1 - DEDUCTION OF THE TAXABLE RESULT OF YOUR COMPANY up to 0.5% of the turnover
Article 238 bis AB of the General Tax Code - See footer for full text.
2 - Works of living artists are EXCLUDED FROM THE PROFESSIONAL TAX.
3 - DURATION LIMITED TO 5 YEARS for the exhibition of works to the public or to staff.
4 - WORKS OF ART ARE NOT SUBJECT TO ISF
5 - ART IS THE REFLECTION OF YOUR BUSINESS
ARTICLE 238 AB CGI:
Article 238 bis (Law n ° 2003-1311 of December 30, 2003 art. 15 I, art. 16 finances for 2004 Official Journal of December 31, 2003)
Article 238 bis AB in force - Edition of January 1, 2006. Modified by Law 2005-1720 2005-12-30 art. 70 Amending finances for 2005 JORF 31 December 2005.
Companies which buy, from January 1, 2002, original works of living artists and register them in a fixed asset account can deduct from the result of the acquisition year and the four following years, for example equal fractions, a sum equal to the purchase price.
The deduction thus made for each financial year may not exceed the limit mentioned in the first paragraph of I of article 238 bis, reduced by the total of the payments mentioned in the same article.
To benefit from the deduction provided for in the first paragraph, the company must exhibit in a place accessible to the public or to employees, with the exception of their offices, the property it has acquired for the period corresponding to the acquisition year and the following four years.
The amounts corresponding to the purchase price of musical instruments are also allowed in deduction under the conditions provided for in the first paragraph. To benefit from the deduction, the company must undertake to lend these instruments free of charge to performers who request them, the company must enter in a special reserve account on the liabilities side of the balance sheet an amount equal to the deduction operated in application of the first paragraph. This amount is reintegrated into the taxable result in the event of a change in allocation or disposal of the work or instrument or of a withdrawal from the reserve account.
The company can set up a provision for depreciation when the depreciation of the work exceeds the amount of the deductions already made under the first to fourth paragraphs.
Regarding the acquisitions of works of art: