Tax advantages when purchasing a work of art
Business owners, support contemporary artistic creation by purchasing the works of living artists and benefit from tax advantages!
A choice that goes beyond simple decoration
The decision to use this deduction is a management decision and does not require prior authorization from the tax authorities. Choosing a work of art means selecting much more than a decorative element for your premises. It means communicating differently: why not consider inaugurating the work in the company when it is displayed? A perfect opportunity to invite your privileged customers, prospects, suppliers and employees. You can also mention your support for artists on your standard communication channels: website, social networks, company brochure, newsletter.
Deductibility conditions
Under Law no. 2003-709 of August 1, 2003, companies or the self-employed who purchase original works of art by living artists can deduct this expense from their Industrial and Commercial Profits. The companies involved are those subject to corporation tax, income tax on industrial and commercial profits (BIC), non-commercial profits (BNC) or agricultural profits (BA).
The deduction requires that the deductible purchase price be recorded in a specific reserve account on the liabilities side of the company’s balance sheet.
Exposure and deduction
The work must be exhibited in a place open to the public (employees and/or customers) during the year of acquisition and the following 4 years (reception, waiting or meeting rooms, lobbies, corridors, company restaurants, cafeterias, etc.).
Deduction amount
The total deduction corresponds to an amount equal to the purchase price. The deduction limit is 5/1000 of sales in the year of acquisition.
Time of the deduction
During the year of acquisition of the work of art and the following 4 years in equal fractions (1/5 per year).
