Tax Benefits - Art' et Miss

Artists

Information

Purchasing Art

Taxes : The purchases of original works by living artists are now allowed as a deduction from taxable profits of enterprises. This deduction is performed in equal installments over five years for the year of acquisition and the four following years may not exceed for each year the limit of 5 per thousand of sales minus the total deductions listed Article 238 bis of the CGI AA, and must be assigned to a special reserve account contained in liabilities. The work is recorded in capital and must be exhibited in the premises for 5 years. [Article 238 bis of the Code Général des Impôts (General Tax Code)]*

Renting Art

Advantages of renting ?
- suitable for all budgets
- Possibility to change artworks every six months (at renewal: transportation provided).
- Full deductibilty to renters in the context of planning and designing professional spaces (treated as operating expenses)
- VAT at 19.6 % recoverable by companies
- 15 % discount on purchases of art works presented on this site, after a period of three months rental.

Only in Paris and Ile de France

Contact the gallery directly :

Tel : 01 42 71 79 07

email : artetmiss@free.fr

*Article 238 bis of Code Général des Impôts (General Tax Code)

Acquisition of works of art by living artists

Tax Deduction

January 2004

General :

The companies included in the RI (Income Tax) or SI (Corporation Tax) that purchase original works by living artists for display in public can, in certain circumstances, deduct the price from their profits the acquisition of these works.

Works :

- Canvases, drawings, paintings :

Comprised of art works, collages and similar canvases, paintings, drawings, watercolors, gouache, pastels, monotypes executed entirely by the hand of the artist (decree 95-172 of February 17, 1995).

- Photography :

Considered to be works of art (photographs) taken by the artist, printed by him or under his supervision, signed and numbered and limited to thirty copies, all sizes and mounts.

Exhibition of works :

The company has an obligation to exhibit works in a public place for at least five years (duration of deductions).

Deduction of profits impossible:

The deduction for the purchase of original art by living artists can not exceed the differences between:

- 5°/

of total turnover

- And the total of other payments retained under certain tax reductions (see below).

Terms of Achievement:

To qualify for this deduction, it should proceed as follows:

- The purchase price of the work is recorded in the balance sheet,

- The deduction is made from an extra-tabme book on the 2058 tax forms (change of accounting income to taxable income) ,

- The tax deduction is made by an equal fraction of 5 years (fifth year including the first year without pro rata),

-The deduction can be made if the result is negative,

- In regards to the allocation of income, the portion deducted for taxes should be assigned a special reserve account no later than the end of the year following the one in which the deduction is made,

- For accounting purposes, there is not a deprication in the value placed on the asset because the work does not normally lose value. It is nevertheless possible, in certain circumstances, to perform an impairment loss of value.

Are subject to the limitation of 5°/00, first donated works and bodies referred to in Article 238 bis of the CGI-I and other sums paid to works by living artists.

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