French General Tax Code
In forceCompanies that purchase original works by living artists between 1 January 2002 and 31 December 2025 and include them in a fixed asset account may deduct an amount equal to the purchase price from their profits for the year of acquisition and the following four years, in equal fractions.
The deduction thus made in respect of each year may not exceed the limit mentioned in the first paragraph of 3 of article 238 bis, less the total payments mentioned in the same article.
To benefit from the deduction provided for in the first paragraph, the company must exhibit in a place accessible to the public or to employees, with the exception of their offices, the asset that it has acquired for the period corresponding to the financial year of acquisition and the four following years.
Sums corresponding to the purchase price of musical instruments are also eligible for deduction under the conditions provided for in the first paragraph. To benefit from the deduction, the company must undertake to lend these instruments free of charge to performers who request them.
The company must enter a sum equal to the deduction made in application of the first paragraph in a special reserve account on the liabilities side of the balance sheet. This sum is reintegrated into taxable income in the event of a change of use or disposal of the work or instrument or withdrawal from the reserve account.
The company may set aside a provision for depreciation when the depreciation of the work exceeds the amount of the deductions already made under the first to fourth paragraphs.
