Specific, very incentive measures, were taken in favor the contemporary art, holdings, the musical practice, the live performance,saving and the enrichment of the public collections.
Acquisitions of oeuvres of contemporary art and musical instruments by companies
The companies which acquire original works of living artists and register them on an account of fixed assets can deduct from the taxable result of the exercise of acquisition and of the next four years, by equal fractions, a sum equal to the purchase price, the deduction so made in conformance with every exercise which can not exceed the limit of 0,5 % of the turnover, underestimated by the payments made in conformance with the corporate sponsorship. The original works of living artists are besides excluded from the professional tax basis. During all the period of deduction, the works so acquired must be exposed in a place open to the public or simply to the employees and\or to the customers of the company, with the exception of offices. The same measure applies to the acquisition of musical instruments intended to be lent for free to professional interpreters, to students of the superior national academies of Paris and Lyon and to students in the IIIth cycle of the other academies and the music schools.
As amended by Law n°2005-1720 of 30 December 2005 – art. 70 JORF 31 December 2005
The companies which buy, as from January 1st, 2002, original works of living artists and register them on an account of fixed assets can deduct from the result of the exercise of acquisition and of the next four years, by equal fractions, a sum equal to the purchase price.
Deduction so made in conformance with every exercise cannot exceed the limit mentioned in the first paragraph of one of the article 238 bis, underestimated by the total of the mentioned payments to the same article.
To benefit the deduction planned in the first paragraph, the company has to expose in an open to the public place or to the employees, with the exception of their offices, the good which it acquired for the period corresponding to the exercise of acquisition and in the next four years.
The sums corresponding to the purchase price of musical instruments are also admitted in deduction in the conditions planned in the first paragraph. To benefit the deduction, the company has to make a commitment to lend these instruments for free to the artists-interpreters who make it the demand.
The company has to register on an account of special reserve in the liabilities of the balance sheet a sum equal to the deduction operated in application of the first paragraph. This sum is reinstated in the taxable result in case of change of affectation or transfer of the work or the instrument or the taking at the expense of reserve.
The company can establish a reserve for depreciation when the depreciation of the work exceeds the amount of deduction already operated in conformance with first one in fourth paragraphs.