Tax deduction for Artwork
When companies buy art !
Tax deduction Artwork
Companies that buy original works by living artists for display to the public can, under certain conditions, deduct the purchase price from their taxable income. The companies concerned are: - Companies subject to corporation tax (IS) (automatically or optionally) - Individual businesses subject to income tax in the BIC category.
Warning ! Works purchased for resale are included in the company's inventory and do not qualify for the deduction.
Yes, but living AND visible art!
To benefit from the deduction, the company must exhibit the work of art in a place accessible free of charge to the public or to employees, with the exception of their offices, for 5 years (i.e. the period corresponding to the exercise of acquisition and the following 4 years).
Pictures, paintings, drawings, watercolors, gouaches, pastels, monotypes, entirely executed by the hand of the artist meet the conditions of this deduction.
The artist must be alive at the time of purchase of the work and the company must be able to prove the existence of the artist on the date of acquisition.
La Jolie Galerie is responsible for providing you with the necessary documents when purchasing your work.
The exhibition of the work can be carried out: - on company premises, provided that they are effectively accessible to the public or to employees (it cannot be a personal office, a personal residence or a place reserved only for customers of company, for example) - during events organized by the company or by a museum, a local authority or a public establishment to which the property has been entrusted - in a museum to which the property is deposited by a region, a department, a municipality or one of their public establishments or a public establishment of a scientific, cultural or professional nature - The exhibition must be permanent (during the 5 years required), and not carried out on the occasion of one-off events (temporary exhibition, seasonal festival, in particular).
Inform your audience! Whatever the conditions of exposure to the public adopted by the company, the public must be informed of the place of exhibition and of its possibility of access to the property. The company must therefore communicate the appropriate information to the public, by attractive indications on the place of the exhibition and by all promotional means adapted to the importance of the work.
So ? Would investing in art be a good investment for businesses ?
Get inspired catalogue here !
French texts, sources and references (please be aware about the tax rules of your country)