Tax exemption

Tax exemption for works of art: instructions for businesses

Combining work and pleasure (for the eyes), who hasn’t dreamed of it? Some companies have granted themselves this privilege by decorating their offices with magnificent works of art. To combine business with pleasure, discover Rise Art Pro, our fully integrated leasing offer, which allows you to benefit from a tax reduction. Bonus: 3 tips for bringing art into your business. By Cécile Martet

Many business leaders are unaware of a very advantageous tax provision: beautifying their premises by installing works by living artists, while reducing their corporate tax.

Advantages :

Art leasing allows you to rent a work for a specific period and acquire it at the end of the contract by paying a residual portion. Ultimately, this type of financing allows businesses and liberal professions to acquire works of art for their work spaces in a simple and progressive manner while reducing their taxes. Please note that the leasing of works of art is by nature a rental expense, so it does not affect the company's borrowing capacity.

-Strengthen your image: Develop a high-end image with your customers, suppliers, partners, etc.

-Reduce your taxes: Monthly rents are deductible from IS (Business) or IRPP (Liberal professions) (article 238bis AB of the CGI)

-Spread your costs: Renting allows you to spread the cost of purchasing the work over several years (13 to 48 months)

-Buy cheaply: Start a contemporary art collection!

Companies affected by the tax exemption of works of art:

Today, all companies based in Metropolitan France can benefit from an art leasing contract. Liberal professions can also set up a leasing, whether you are subject to income tax or corporate tax, BNC or BIC, the tax treatment is the same: the rents will come in both cases in deduction from taxable income.

Tax exemption for works of art: the patronage law

or the purchase of a work of art, a professional can deduct from his tax base 20% of the purchase price of a work of art over a period of 5 years, within the limit of 0.5% of the annual turnover of the company. Furthermore, original works by living artists are also excluded from the professional tax base.

The criteria to be respected:

→ Buy works of contemporary art and living artists Only contemporary works are taken into account in this tax system. Indeed, the artist must be alive at the time of purchasing the work.

→ Exhibit your works in a public place For at least 5 years, i.e. the amortization period of the work concerned by the leasing, it must be exhibited in places accessible to the public, welcoming company staff, customers and collaborators. In short, it cannot be placed in a private office or in a place reserved only for the company's clients, for example.

→ Enter the works on the company’s balance sheet The deduction system requires being able to enter the deductible acquisition price on the company's balance sheet. On the other hand, works cannot be purchased to be resold quickly. In fact, they must be subject to immobilization in the company's accounts. They will therefore be deducted in equal fractions each year for 5 years (within the limit of 0.5% of turnover).

Start a business art collection

✓ Start small

When we talk about art in business, we inevitably think of Pinault, LVMH, Société Générale and other large companies which have built up collections worthy of the greatest museums over the years. But it is not necessary to accumulate a large number of works to have an impact! In fact, just one work is enough, placed in a prominent place such as the reception hall or the manager's office. There is no need for the acquired work of art to be expensive either. On the contrary, you can start with carefully chosen works, but within affordable budgets, starting from a few hundred or thousand euros.

✓ Set a guideline for yourself

As soon as you acquire more than one work, it is appropriate to question the notion of a common thread, a guideline in your choices. This line could, among other things, express one of the company's values ​​that you wish to share with your colleagues, prospects, customers, etc. Or choose a theme in affinity with your company's activity. For example, architecture for a construction company, portrait for a consulting firm, or landscape for a company working in the environmental field…

✓ Consider ordering works

When a company wishes to express very specific values, or simply adapt the dimensions of the work to the space it has available, commissioning a work may prove to be the right solution. There is no additional cost in advance compared to a work already completed. However, you have to be prepared to wait a little (a few weeks, or even a few months for larger pieces). It is better to be accompanied by an intermediary who can monitor the completion of the work for you.