Additional benefits for culture
Specific, highly incentivizing measures have been taken in favour of contemporary art, heritage, musical practice, performing arts, preservation and enrichment of public collections.
Acquisitions of contemporary art et of musical instruments by companies
Presentation of the device
Companies that acquire original works of living artists and record them in a fixed asset account may deduct from taxable income of the acquisition year and the following four years, in equal fractions, a sum equal to the purchase price, the deduction thus made for each financial year may not exceedapproximates 0.5% of turnover, less payments made under corporate patronage. Original works by living artists are also excluded from the basis of assessment of the business tax.
Who is this device for?
The provisions of Article 238a AB of the CGI apply to companies subject, either as of right or on option, to thecorporate tax under the conditions of ordinary law as well as those falling within the tax system of the partnerships, whatever the nature of the undertaking’s professional activity.
What are the conditions for the companies concerned to benefit from the deduction?
- The artist must be alive at the time of purchase.
- The acquired work must be "original", in the sense ofArticle 98 A of Annex III to the CGI.
- Throughout the deduction period, the works thus acquired must be displayed in a place open to the public or employees, with the exception of their offices.
The same applies to theacquisition of musical instruments to be loaned free of charge to professional interpreters, students of the National Conservatories of Paris and Lyon and students of the third cycle of other conservatories and music schools.
Spectacle alivet and expositions of contemporary art
Specific provisions have been made for the dissemination of performing arts and contemporary art exhibitions : they concern public or private bodies whose management is disinterested and whose main activity is the presentation to the public of dramatic, lyrical, musical, choreographic, cinematographic and circus works, or the organization of contemporary art exhibitions. These bodies can benefit from corporate patronage (tax reduction of 60% of the amount of the gift) even if they are subject to VAT and other commercial taxes.
In addition, the 2007 Amending Finance Act (Article 23, III and IV) amended Article 238 bis-1 of the CGI to extend the benefit of corporate patronage to limited companies whose capital is wholly owned by the State or one or more national public institutions, alone or jointly with one or more local authorities, whose main activity is the presentation to the public of dramatic, lyrical, musical, choreographic, cinematographic and circus works, or the organization of contemporary art exhibitions.
See about it : Article 238 bis-1 of the CGI and BOI 4 C-5-04, no. 112 of 13 July 2004
National treasures and workss of patrimo interestnial major
Financing by a company for the acquisition of a recognized cultural property "national treasure" or "work of major heritage interest" for the benefit of a public collection is entitled to a tax reduction equal to 90% of the payment amount, within the limit of 50% of the tax due.
These benefits are codified in theArticle 238 bis 0 A of the General Tax Code.
Find the details of the procedure here.
Historical monumentsrprivate services
The 2007 Finance Act (Article 10) amended Article 238 bis-1 of the CGI as well as the articles of the Heritage Code relating to the Heritage Foundation, in order to apply the tax reduction for patronage to corporate donations intended for restoration and public access works of private historical monuments. Under the scheme, donations to the Heritage Foundation or any other approved foundation or association will be eligible for tax relief, for companies and individuals, provided that the monument benefiting from it is kept by its owner and open to the public "for at least ten years".
See about it : BOI 5 B-21-07, no. 133 of 31 December 2007
Related documents :