Tax exemption and rental with purchase option for businesses (Only valid for companies paying their taxes in France)

There are 2 possibilities for professionals:

1 / Artwork leasing with purchase option
  Professionals can rent an artwork and lift the purchase option for professional use
* The company finances the artwork(s) over a period of 13 to 48 months
* The company deducst all monthly payments for interior design and decoration
* The company recoversVAT (if it is subject to it)
* At the end of the leasing you can buy the artworks for a residual value defined in advance (5%): our partner : //IsyLease//


2 / Tax exemption
Articles 238 bis and 238 bis AB of the General Tax Code give precisely the conditions of tax exemption that are offered to companies on the acquisition of original works by living artists.
*Works must be created by alive artists, and must be displayed in a public place accessible to employees, customers, suppliers, ... during the depreciation period of the work, 5 years.
*The tax deduction made for each financial year can not exceed 5 % of the annual turnover of the company. The deduction will be 20% of the purchase price of the artwork for 5 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, knowing that this sum will be
reinstated in the taxable result in the event of a change of assignment or transfer of the work or a deduction from the reserve account.
*Originals artworks from alive artists are excluded from the professional tax base.
* The tax on capital gain is reduced after 2 years and eliminated from the 12th year.


Comparison between leasing with purchase option and tax exemption
++in tax exemption, the artwork belongs to the company
++leased with option of purchase you preserve your cash
++in leased with option of purchase you can choose to finance an artwork of an alive or deceased artist, you can acquire a work that would not be an original work
++the final cost is a bit high


*Non-contractual information