For professionals and institutions
Rental of works of art and leasing (LOA)
The company pays monthly rent for renting works of art, similar to real estate rent. This charge is deductible from the company's taxable income, in accordance with tax regulations (art 39-1 of the CGI). At the end of the rental, it is possible to acquire a work if desired.
Acquisition of works of art
French companies, including liberal professions, have the possibility of benefiting from tax advantages by investing in works of art created by a living artist (Article 238bis AB of the CGI). When a deduction is made extra-accounting, the corresponding part of the accounting result must be allocated to a special reserve recorded on the liability side of the balance sheet. To benefit from this deduction, it is necessary for the company to exhibit the work of art in a place accessible free of charge to the public or to employees, with the exception of their offices, for a period of 5 years. The amounts are deductible up to 10,000 euros or 5% of turnover excluding tax above 10,000 euros.
For individuals
Transfer of work of art
Transfers of works of art worth less than 5,000 euros are exempt from tax (exception for precious metals). In the event of a transfer of works of art for an amount exceeding 5,000 euros, a flat-rate tax is applied in proportion to the transfer price (article 150 VI of the CGI). The applicable levy rate is 6.5% on the sale price.
Succession of work of art
In the context of an inheritance, works of art can be considered as specific assets or assimilated to furniture, which results in the application of a flat rate of 5% for transfer or inheritance taxes.
Leasing of works of art for businesses:
an advantageous solution offered by Arts-Discovery
Arts-Discovery partners with a financial organization, leader in leasing works of art in France, to offer businesses and liberal professions a Rental with Purchase Option (LOA) solution adapted to their needs.
At Arts-Discovery, we have set up a rental solution with purchase option specially designed to allow companies and independent professionals to open their space to contemporary art in a flexible and advantageous way.
By nature, a work of art is not depreciable from an accounting point of view. The financial rental of works of art offers significant tax advantages for companies operating in France or Belgium.Rents are deductible from taxable income, thereby reducing corporate tax. This adapted financing solution allows you tospread the cost of the purchase over several years (from 13 to 60 months) bring your professional space to life without compromising your budget. At the end of the contract, the purchase option allows the company toacquire the work for a residual value.
Leasing works of art is a solution that complements article 238 bis AB of the General Tax Code by promoting the introduction of works of art into professional spaces. This approach actively supports artistic creation and encourages societies to disseminate the values of creativity and artistic expression.
Offer your business a unique artistic environment, a source of inspiration and creativity, while benefiting from an advantageous financial solution. Contact us now to explore the possibilities offered by art leasing.
The Arts-Discovery team is at your disposal to answer all your questions and support you in this enriching artistic experience.
