Exempt Art from Tax, tax Benefits for Businesses
INVESTING IN ART FROM BRIGITTE MORILLON
Is examining the tax benefits for a company or a private individual.
You can work with her
As a sponsor,
By buying a tax-exempted artwork.
She's looking for ambitious partners.
Sponsoring... Contributing to her projects...
Because Brigitte Morillon's art speaks to people’s soul
and creates stronger ties with them.
Sponsoring is the material support given to an event, a person, a product or an organisation with a view to get a direct benefit from it.
Sponsoring is a word with an Anglo-Saxon origin, referring to a partnership practice by which one of the parties, the sponsor, provides additional financial or material resources for the purpose of an event, in exchange for a promise of visibility and advertising generated by this event.
Efficiently include sponsoring
in your global communication strategy
In concrete terms, the sponsor supports a person, an organisation or an event in order to associate his image to this person, organisation or event. Sponsoring isn’t practised as volunteering, but rather with a mercantile objective.
There is a great variety of sponsoring: inflow of funds, material supplying, partial or complete organisation of a cultural, humanitarian, sport event…
The sponsoring expenditures incurred in events with a cultural nature or participating in emphasising the artistic heritage, and in spreading the French culture, language and scientific knowledges are deductible from the taxable profit when they’re shown in the direct interest of the establishment (French General Tax Code, Article 39-1-7°).
Buying an artwork
is acquiring an asset that puts together pleasure, enhancement and tax optimisation !
Companies and self-employed acquiring artworks from living artists :
The French General Tax Code article 238 bis AB states that “companies acquiring works from living artists can deduce a sum of money equal to the work’s acquisition price from their acquisition financial year, and during the four next years in equal shares. This mechanism allows for reducing each year, for 5 years, 20% of the acquisition price of works from living artists”.
4 conditions determine this tax advantage:
- The works acquired should be allocated to a fixed assets account.
- The deduction made for each financial year should not exceed 0,5% of that year’s turnover.
- The work should be displayed during these 5 years, in a place freely accessible to the company’s employees and visitors.
- The company should allocate to a special reserve account on the liabilities of the balance sheet a sum of money equal to the deduction made, this sum being returned to the taxable result in the case of changes in use or sale of the work, or direct debit from the reserve account.
For private individuals
Tax on wealth (I.S.F) exemption:
The French General Tax Code L'article 885I state that “artworks are not subject to the tax on wealth. They are not shown in the tax on wealth return and the amounts used for this acquisition are not taxable. This tax provision applies for paintings, drawings, gouache paintings, watercolours paintings as well as sculptures and bronzes.”
Taxation and capital gains benefit:
The French General Tax Code L'article 271 du CGI states that “in the case of resale of an artwork, the seller can choose between two options if he has a receipt: the 5% flat-rate taxation or the application of the general capital gains tax system (a system identical to the one of capital gains from property with an exemption after 15 years). If he does not have a receipt, the seller should pay the 5% tax that will be settled through the sale on behalf of the seller. Regarding the transfer of assets, artworks can be included in the 5% flat-rate on furniture in the case of a succession, under certain conditions.”