It is possible to benefit from tax deductions for the purchase of a work of art.

Under Article 238bis AB of the General Tax Code, companies that purchase works by living artists benefit from advantageous tax provisions

For works with an acquisition price of less than 5000 euros, companies and professionals can deduct the purchase price from the result of the acquisition exercise and the following 4 years in equal fractions. This benefit is granted on the condition that the works are exhibited free of charge in a place "accessible to the public, customers and/or employees of the company, excluding personal offices."

So you can build up a collection of contemporary art, allowing you to beautify your waiting rooms and reception halls, while saving on your taxes.

Below are some details of these provisions.

Companies often do not know their rights to acquire original works by living artists and exhibited to the public.

A company that invests in Art and exposes its acquisitions may make tax deductions on the result of the acquisition and over the next four years.

Article 238 Bis AB of the General Tax Code (CGI):

The company may, within the limit of 3.25 per 1000 of its turnover, deduct the price of an acquired work from its taxable profits in equal annual increments for five years.

In return for this tax deduction, the company must present the acquired work to the public.

Article 238 bis AB of the General Tax Code, derived from Article 7 of the Act of 23 July 1987 provides that companies acquiring original works by living artists may deduct under certain conditions a sum equal to the purchase price of the works concerned:

In the case of the purchase of works by living artists, the aim is not to enrich public collections, but to promote contemporary creation, the company remains the owner of the work.

This deduction, which is made in equal fractions for five years for the acquisition exercise and for the next four years, cannot exceed the 3.25 per thousand revenue limit for each fiscal year, minus the total deductions referred to in CGI's section 238 bis AA, and must be allocated to a special reserve account on balance sheet liabilities.

In return for this tax deduction, the company must present the acquired work to the public.

In the event of a change in assignment or assignment of the work or a levy on the reserve account, the deductions made are immediately reinstated.

The decision to make this deduction is a matter for the management of the company and is not subject to any prior authorization from the administration.

The company that decides to make this deduction must attach to its statement of results a document consistent with the model presented by the administration.

Minister of Culture

Ministry of Culture website:

Find all the useful information...

The work is recorded in capital. A reserve corresponding to the deductions made created on the liabilities of the balance sheet is re-equalable to taxable profits if the work ceases to be exposed to the public or is sold.

Art sponsorship and patronage

By using art sponsorship or patronage, the company enhances its image and acquires a new notoriety.

Patronage and sponsorship for contemporary art are not only reserved for large companies. Even on a small scale, it can bring prestige to your communication.

A tax reduction of 60% of the amount of the donation taken within the limit of 20% of taxable income with the possibility of spreading over 5 years when the limit is reached. This reduction is granted to donations made by employees to a group's corporate foundation.

A tax reduction of 60% of the amount of donations within the limit of 5/1000 of turnover with the possibility of carrying over to 5 years in case of loss-making situation the reduction is also granted for payments made to festivals organized by associations or persons of public law.

In order to encourage the acquisition of works of art or national treasures, companies are exempt from the business tax.

Dation is an exceptional method of payment that allows the payment of a tax debt by handing over works of art, books, collectibles, documents, of high artistic or historical value. It is a fair system that allows the taxpayer to extinguish his debt and the state to enrich public collections. (Source Culture.gouv.fr)

Works of art are not subject to the ISF. To this extent, they are not mentioned in the EWB return and the amounts spent on the acquisition are tax-free. This tax provision, applicable to paintings, drawings, gouaches, watercolours as well as sculptures and bronzes, makes it a perfect tool for the removal of the ISF. (Source Culture.gouv.fr)

Owning a work of art means combining dream, pleasure and heritage. The acquisition of a work of art is indeed an excellent recommendation for heritage diversification.

In a period of complete transformation of the art market, acquiring and preserving works of art appears to be a real opportunity. The value of prestige and pleasure, art objects are exempt from wealth tax, allow certain taxes to be paid and are easily transmitted.

However, the numbers speak for themselves: Americans account for 46.95% of the global art market, up 7% between 1998 and 2001. Europeans (the 15) 42.46%, down 7.2% in the same period. Britain still needs to be treated separately, with 25.28 per cent alone (more than half of the 15-year market), up 1.6 per cent. By comparison, the French market represents only 7.58% of the total, down 20.8%.

to find all the texts from which this section was drawn; Consult:

- Culture.gouv.fr: "New tax provisions: patronage of individuals, businesses and foundations"

- Libres.org: "When taxation kills the march of art"

- Pratique.fr: "Inheritance Rights"