TAX OPTIMISATION FOR ARTWORKS
Joint sale of artworks in solidarity with the Syrian artists from the SYRIA.ART collective!
Whether you’re a company or individual affected by the French wealth tax, buying an original artwork not only brings personal satisfaction and pleasure, but also entitles you, under French law, to enjoy some beneficial tax breaks.
It is first important to define an artwork from a fiscal perspective. In accordance with Article 98 A of Appendix III of the French Tax Code, the following are considered artworks:
– Pictures, collages, and similar small pictures, paintings and drawings crafted completely by the artist, with the exception of architects’ and engineers’ drawings and other industrial, commercial, topographical or similar diagrams, manufactured items decorated by hand, painted canvases for theatre decoration, art studios or similar uses.
– Photographs taken by the artist, printed by him/her or under his/her supervision, signed and numbered, with no more than thirty copies across all formats and media.
Follow our guide to find out all the benefits and conditions required in order to enjoy take advantage of this discount, depending on whether you are a company or individual.
COMPANIES: TAX OPTIMISATION FOR ARTWORKS
Do you run a company and want to benefit from tax breaks while enhancing your company premises? By investing in art, a company can deduct the purchase price from its annual earnings under certain conditions.
WHY INVEST IN ARTWORK?
To enhance the company’s image while supporting and sponsoring a living artist, to decorate and add a contemporary, creative touch to your office, to liven up a meeting room, to modernise a reception area or waiting room to give patients a warm and personal welcome, or to revitalise a shop’s image to attract more and more customers… there is an endless list of reasons to buy a work of art, in addition to a significant tax break.
What’s more, the fluctuating art market means this investment can quickly become profitable, with the artist’s rating capable of rapidly appreciating in value.
That’s just another reason to invest in Contemporary Syrian art, and choose an original artwork from the wide range of pieces by SYRIA.ART’s Syrian artists!
UNDER WHICH CONDITIONS CAN YOU BENEFIT FROM THIS TAX BREAK?
Below are the conditions which must be met in order to benefit from the tax deduction:
► The purchased artworks must be created by living artists, and displayed in public for the first five years after purchase.
In the event the artwork costs less than € 5,000 (excluding tax), the display condition may be met by presenting the piece in a location accessible to the company’s clients, employees and suppliers, but not private offices.
► The artworks’ purchase price shall be split into equal parts, corresponding to a deduction of 20% of the purchase price over five years.
Example: A company purchases three artworks for a total amount of € 24,000 in November 2016. The company’s financial year ends on 31 December of that same year. As such, it may enjoy a € 4,800 deduction (corresponding to 20% of the total purchase price for the artworks over the 2016, 2017, 2018, 2019 and 2020 financial years).
► The tax deducted for each financial year cannot exceed 5% (excluding tax) of the company’s annual turnover.
BUY ART FROM SYRIA.ART AND ENJOY TAX DEDUCTIONS
Fallen in love with one or more works by SYRIA.ART’s Syrian artists, and want to finalise your purchase and find out what to do next in order to benefit from a tax deduction?
Feel free to email us at firstname.lastname@example.org to arrange your purchase(s). We’ll be glad to provide you with more information.
Armed with these documents proving your purchase, all you have to do then is assert your rights with your local département’s Company Tax Authority.
INDIVIDUALS: TAX OPTIMISATION FOR ARTWORKS
If you’re an individual affected by the French Wealth Tax, diversify and enrich your assets by securing yourself a beautiful work of Syrian art thanks to an attractive taxation policy!
Whether it’s a purchase, resale, transfer or ownership of art, the French legal and tax system facilitates appealing benefits, allowing you to pay less tax.
FRENCH WEALTH TAX EXEMPTION: YOUR RIGHTS
It is first essential to note that works or objects of art fiscally recognised as such are not subject to French wealth tax. You are therefore not obliged to mention them in the wealth tax returns, and the amounts invested to purchase these artworks are not taxable. This special tax provision, which applies to all artworks fiscally recognised as such, can veritably help lift restrictions on wealth tax.
ATTRACTIVE TAXATION ON CAPITAL GAINS
Let’s take a concrete example: You have purchased a painting by a young Syrian artist from SYRIA.ART, which has increased in value, and you now wish to resell it.
Equipped with the invoice provided with your artwork, you have two options:
– Choose the flat 5% tax rate;
– Or choose to apply the general capital gains scheme.
It is also important to note that purchasing an artwork is exempt from capital gains (27%) after 12 years, upon presentation of invoice.
After 2 years of owning an artwork, you receive a 10% reduction every year.
TRANSFERRING YOUR ASSETS
In the event of succession, artworks purchased previously may, under certain conditions, be included in the 5% flat rate for goods and chattels.
PAYMENT OF CERTAIN TAXES IN KIND
French law allows owners of artworks to pay certain taxes by offering an artwork to the State, in exchange for the rights to which it is entitled.
BUY ART FROM SYRIA.ART AND ENJOY TAX BENEFITS
Now that you’re aware of all the tax benefits available to you, you can start your collection of Contemporary Syrian Art at ease!
Have you spotted a piece you like among the many original artworks presented by SYRIA.ART’s Syrian artists?
Feel free to email us at email@example.com to finalise your purchase(s). We’ll be glad to provide you with more information.
After your purchase, make sure you keep your bill and each piece’s authenticity certificate in a safe place. You’ll need them if you wish to take advantage of the aforementioned benefits.
© Copyright 2016 SYRIA.ART – Association pour la Promotion de l’Art Contemporain Syrien
Association governed by law 1901, established on 6 July 2016
(Included in the French Official Journal on 16 July 2016, under announcement number : 55, and publication number: 20160029)