Artworks and musical instruments eligible for tax deductions
If a company has purchased an original work of art or a musical instrument from an artist who was alive at the time of purchase, they may deduct the acquisition price from its taxable income. This is only valid if the artwork or instrument was acquired between 1st January 2002 and 31st December 2022.
The deduction would be divided into 5 equal amounts between the year that it was purchased and the following 4 years. The money deducted from the taxable amount at the end of the year must be put into a fixed assets account and should not be distributed as dividends.
If the company is not related to art or music and is therefore a sponsor, the deduction for each tax year would be limited at 5 per thousand of the company’s annual turnover.
In order to benefit from this deduction, it is obligatory to put the artwork on display for the public or employees, as long as it isn’t in the company’s own office. Equally, the company is obliged to lend the musical instrument for free to performers of a certain standard upon their request.
If this is something which could apply to you, our team of experts will happily assist you with any queries you might have. Please do not hesitate to contact us via telephone +33 (0) 1 53 93 94 20 or by mail at [email protected]
If you would like to keep up to date with everything that is happening here at Maupard then be sure to follow us on our social media pages :