My Lagardes

Tax exemption



Reference article: 238 bis AB

Companies that purchase, as of January 1, 2002, original works by living artists and enter them in a fixed asset account may deduct from the result of the financial year of acquisition and the following four years, in equal installments, an amount equal to the acquisition price.

The deduction thus made for each financial year cannot exceed the limit mentioned in the first paragraph of 1 of Article 238 bis, reduced by the total of the payments mentioned in the same article.

To benefit from the deduction provided for in the first paragraph, the company must display in a place accessible to the public or to employees, with the exception of their offices, the property it has acquired for the period corresponding to the financial year of acquisition and the following four years.

The company must enter in a special reserve account on the liabilities side of the balance sheet an amount equal to the deduction made pursuant to the first paragraph. This amount is reincorporated into the taxable income in the event of a change of allocation or transfer of the work or instrument or a withdrawal from the reserve account.

The company may set aside a provision for depreciation when the depreciation of the work exceeds the amount of deductions already made under the first to fourth paragraphs.