Art et fiscalité

LESS TAX FOR the COMPANIES AND Liberal professions

Professionals, you dream of a table or a sculpture for your office, your waiting room or your hall of reception, but do not have time to run the galleries or the sale-rooms...
ArtOsmose is given the responsability to find you this work and accompanies you in the steps by this acquisition while profiting from tax incentives (sale, hiring, leasing).

When you buy a work of a free artist or author introduced by ArtOsmose, you profit from all the tax incentives (in French right) related to the acquisition of works of alive artists (article 200 of the cgi for the private individuals and 238 (a) for the companies).

Purchase of works of alive artists by companies and liberal professions:
The acquisition of a work of art of an alive artist (Article 238 (a) AB of the cgi) opens right to a deduction on the taxable result of 1/5ème of the value of work during 5 years.
This deduction is limited to 5/1000 of the turnover (or fees for the liberal professions).
The ceiling of 5/1000 applies in office plurality to the gifts and acquisition of work of Article.

Example with an acquisition of a work of a value of 4.000 Euros:
Assumptions on the company... CA: 150.000 Euros and Résultat: 20.000 Euros
Deduction of the year: 4.000 X 1/5 = 800 Euros reached a maximum with 150.000 X 5/1000 = 750 Euros
1) Subjugated company with the IS
Tax cut:
750 Euros X 15% = 112 Euros (reduction by 750 X 33% = 250 if the result is > with 38.120 Euros)

2) Subjugated company with IR (individual business, liberal profession)
Reduction of national insurance contributions (ranging between 20 and 35%): 750 X 35% = 263 Euros
IR reduction: (750 - 263) X 40% (marginal section) = 195 Euros
That is to say a total reduction of 458 Euros per annum during 5 years.

This tax incentive is conditioned by 4 elements:
• Acquired works must be registered on an account of permanent assets.
• The deduction carried out under each exercise should not exceed 0,5% of the sales turnover of the year.
• Work must be exposed, during the 5 years, in a place freely accessible to the employees and the visitors from the company.
• The company must register on a special reserve account in the passive of the assessment a sum equal to the operated deduction, knowing that this sum will be reinstated in the taxable result in the event of levy or or transfer assignment change of work on the reserve account.

This tax incentive allows not only for the company of défiscaliser and to reduce its taxes but also to constitute a sure inheritance.

Exemption STF:
The works of art are not subjugated with the Solidarity tax on Fortune (STF). They are thus not mentioned in the declaration of the STF and the amounts devoted to acquisition are nontaxable. This tax provision, applicable as well to paintings, drawings, gouaches, watercolours as with the sculptures and bronzes, in fact a perfect tool of removal of the upper limit of the STF.

Exemption of appreciation after 12 years:
Moreover, the purchase of a work of art is exonerated from appreciation last 12 years. Knowing that an abatement of 10% is authorized each year beyond two years of detention, the normal appreciation of 27% dies out itself at the end of 12 years. Obviously, this is possible if one can attest date of purchase by the supply of an invoice.
 

Are considered, by the French tax services, like works of art allowing the desfiscalisation:
1° Tables, joinings and tableautins similar, paintings and drawings, entirely carried out with the hand by the artist, other than the drawings of architects, engineers and other draftsmanships, commercial, topographic or similar, manufactured articles decorated with the hand, fabrics painted for stage sets, funds of workshops or uses similar;
2° Engravings, prints and original lithographies drawn of number limited directly in black or colors, of one or more boards entirely carried out with the hand by the artist, whatever the technique or the matter employed, except for very proceeded mechanical or photomechanical;
3° Other than the articles of jewelry, goldsmithery and jewelry, original productions of art sculptor or the sculpture in all matters since the productions are carried out entirely by the artist; pig iron and cast iron of sculpture to pulling limited to eight specimens and controlled by the artist or his having right;
Mural 4° Tapestries and textiles facts with the hand, on the basis of original paperboard provided by the artists, provided that there does not exist more than eight specimens of each one of them;
Ceramics 5° Exemplary single, entirely carried out by the artist and signed by him;
6° Enamels on copper, entirely carried out with the hand, within the limit of eight numbered specimens and comprising the signature of the artist or the workshop of art, other than the articles of jewelry, goldsmithery and jewelry;
7° Photographs taken by the artist, drawn by him or under its control, signed and numbered within the limit of thirty specimens, all formats and supports confused.

   
Tax incentives of the sponsorship of artist:

Sponsorship is a publicity campaign. It relates to all the companies which, publicly, associate their name with a cultural event such as the promotion of an artist through the Diffusart screens.
It is an commercial exchange (financing of an artistic exposure against communication) which gives place to a subjugated invoicing with VAT.
This expenditure is deductible from the result of the company, under running costs and comparable to expenditure of advertizing nature, but which must remain in a normal relationship with the turnover of the company and the discounted advantage.