Patronage & Tax incentives

Company, professional or individual, the patron shows through his commitment, his values and his interest in contemporary art.

In partnership with Shifting Frames, art patronage promotes new exchanges and dialogues by adding an artistic dimension to the professional environment.

These philanthropic actions, also qualify for significant tax benefits. Thus, the tax exemption of artworks allows professionals and companies to create an artistic heritage while reducing their taxes. This tax exemption is governed by Article 238 bis AB of the General Tax Code.

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Principle

• Companies can, hence, deduce from the result of the acquisition year and during the following 4 years, in equal fractions, an amount equal to the acquisition price limited to 5 per thousand of its turnover excluding VAT.

Who is concerned?

• It applies to companies subject to corporate tax or professional corporations regime, whatever the nature of their firm occupation.
• ​This concerns the french residents.

Conditions

• The amount equal to the purchase price has to be within 5 per thousand of its net sales.
• The company must have over 5 years works acquired in a place accessible to customers, visitors and / or employees of the company, excluding home offices.​

Example

•  A company with net sales of 250 000 euros acquire works by living artists for 6000 euros.
• The maximum deduction is equal to 250 000 X 5°/oo =1250 euros.
• The tax deduction for the year: 6000 X 1/5 =1200 euros.
• On a taxable income of 10000 euros, the company will deduct 1200 euros,  8800 euros remaining subject to tax.
• ​​Tax deduction will happen for 5 consecutive years.

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