For businesses in France, investing in artwork can not only be a wise decision from a cultural standpoint, but also a financially savvy one. This is because the French government offers tax exemptions for businesses that purchase artwork. In this article, we’ll dive into the details of the tax exemption of buying artwork for enterprises in France.
Conditions and Pratices
The tax exemption is part of the “Loi de Finances pour 2021″ in France. Essentially, it allows businesses to deduct the full value of the artwork from their taxable income. To qualify for this exemption, artworks must be original pieces purchased before 31 December 2025 from a living artist. It must also be displayed to customers or employees in the company’s offices or public spaces for at least five years.
Enterprises are eligible for a tax deduction of 100% of the value excluding tax of artworks over 5 years by equal portions (20% per year). The sums are deductible up to a limit of €20,000 or 0.5% of the company’s turnover.
To take advantage of the tax exemption, businesses must keep track of the purchase of the artwork, including details such as the artist’s name, the artwork’s title, the purchase price, and the purchase date. They must also maintain documentation that proves the artwork’s display in their offices or public spaces for at least five years.
Benefits for Enterprises
The tax exemption of buying artwork for enterprises in France presents several benefits. Firstly, it provides an excellent opportunity for businesses to invest in and support the arts and culture sector in France. Secondly, it enables businesses to deduct the full value of the artwork from their taxable income, leading to substantial tax savings. Finally, by displaying original artwork in their offices or public spaces, businesses can create a more inviting and inspiring environment for employees and visitors alike.
The tax exemption of buying artwork for enterprises in France is an opportunity that businesses should not overlook. It offers numerous advantages, such as supporting the arts and culture sector, reducing tax liabilities, and enhancing the aesthetic value of the workplace.
If you have any questions on this subject, or if you are looking for inspiring artworks to decorate your offices, feel free to contact us for further advices at : contact@tia-talent.com.
