Tax Credit for Entrepreneurs of Live Shows: Seven frequently asked questions about claiming back taxes for live shows.
This article is a follow up from ‘Tax Credit for Entrepreneurs of Live Shows’, which was published on the 24th of August 2016. It explains ‘Decree 2016-1209’, which was put in place on the 9th of September 2016.
This decree specifies the necessary conditions for applying tax credit. It also defines the relevant shows and the limitations for certain categories regarding expenditure.
Unlike the previous article, this one is structured in such a way that it tries to answer any questions that may arise (concerning the tax credit) before you ask them.
- Which shows are eligible for tax credit?
The following represents the different categories of shows:
- Concerts and recitals
- Comedy shows (e.g. skits and sketches)
- What is the definition of a live musical or variety show?
These productions are defined as ‘a series of performances of artistic and aesthetic continuity.’
These performances must have identical set designs, an unchanging repertoire and musical arrangements that remain the same in order to provide a unique display.
Otherwise, the show is deemed new and will therefore be subject to a separate application for tax credit.
- How does one claim the tax credit?
One must send a request for provisional accreditation to the ‘Ministry of Culture’.
This provisional accreditation is granted after the consultation of an expert committee.
For example: if final approval was not obtained within 42 months of the provisional accreditation, the company would have to repay the tax credit that it had received.
- What documents must be sent with the request for provisional accreditation?
The provisional accreditation request must be accompanied by the following:
- A French commercial registration extract (Extrait Kbis) from within the last 3 months
- A sworn statement
- A list that includes the dates, the attendances and the venues (performed in) of the 3 years preceding the application
- A sworn statement confirming that the conditions expected of Section II of Article 220n are respected
- A sworn statement showing that the company complies with all legal, social and fiscal obligations
- A quote detailing the expenses of the show
- A list of all providers
- A list of the provisional performance dates and venues for the shows
- Who represents the ‘Committee of Experts’?
The ‘Committee of Experts’ is chaired by the general manager of the ‘DGCA’ (Direction générale de la création artistique). It also includes:
- The general manager of the ‘DGMIC’ (Direction générale des médias et des industries culturelles)
- The director of the ‘CNV’ (Centre nationale de la chanson, des variétés et du jazz)
- A representative from ‘SACEM’ (Société des auteurs, compositeurs et éditeurs de musique)
- A representative from the ‘IFCIC’ (Institut pour le financement du cinéma et des industries culturelles)
This committee of experts is responsible for issuing the provisional accreditation.
- What documents must be sent with the request for final approval?
The request for final approval must be filed with the ‘Ministry of Culture’ and accompanied by the following:
- A document verified by a certified public accountant which indicates the cost of the show on the request date, the means to finance it and the details regarding expenses
- A list of all employees
- A proof of payment for social security contributions
- A list of all providers
- The extracts from the artist’s contracts which justify the expenses
- Does the decree consider any limits to expenses?
This decree does consider limits to expenses incurred, notably that:
- The amount of the director’s salary that is taken into account is 45,000€ per year, maximum
- Accommodation expenses are limited to 270€ in the city of Paris and the departments of Hauts-de-Seine, Seine-Saint-Denis and Val-De-Marne but to 200€ in the other departments
If you are currently an entrepreneur looking to put on a show, it is important to ensure substantial understanding of all relevant information, facts and procedures. Here at Maupard, we would be more than happy to advise you on this matter and to allow you to make the most of these opportunities.
Do not hesitate to contact us by telephone on +33 (0) 1 53 93 94 20 or by e-mail to [email protected], so we can work out the needs of your business. Our team of experts is here to answer any questions you may have.